The American Gaming Association (AGA) is facing a reshaped lobbying landscape as major operators like Draftkings, Fanduel, Fanatics, and bet365 exit the group over disagreements on prediction markets. The AGA's Q1 2026 Gaming Industry Outlook reveals that 81% of gaming executives view prediction markets as a significant threat to the regulated gaming industry. This shift comes as the Senate Commerce Subcommittee prepares to hold its first hearing on prediction markets on May 20. The exits of these operators, who have launched their own prediction market products, highlight a growing divide within the industry. The Sports Betting Alliance, now led by former AGA executive Joe Maloney, represents several online operators and stands in contrast to the AGA's stance. Meanwhile, the Coalition for Prediction Markets, backed by companies like Coinbase and Robinhood, is gearing up to defend the CFTC-regulated framework for prediction markets, signaling intensified lobbying efforts in the coming months.