DraftKings and FanDuel resign from American Gaming Association over prediction markets
Both companies chose to leave the organization as their ‘plans no longer fully align’ with the direction of the AGA
US gambling giants FanDuel and DraftKings have resigned from the American Gaming Association (AGA) over opposition to the companies’ prediction markets ventures.
In separate announcements on Tuesday, 18 November, the two companies explained that the directions they were taking are “not aligned” with the priorities of the AGA, the leading trade organization and lobbying group representing casinos, gaming manufacturers and online sportsbooks.
Both FanDuel and DraftKings have recently announced the launch of prediction platforms in states where sports betting is not yet legal. These markets, currently operated by platforms such as Kalshi and Polymarket, allow users to trade so-called ‘event contracts’ on events and outcomes from sports to elections.
Such markets are federally regulated as commodities through the Commodity Futures Trading Commission, though this means they do not come under the umbrella of traditional state-by-state gambling frameworks. The AGA opposes these markets, arguing that they are a threat to the integrity and regulation of sports betting in the US.
“We recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operators. After thoughtful consideration, we have decided to step back from our AGA membership at this time,” said a FanDuel spokesperson to CNBC regarding the resignation.
“As the company’s business strategy evolves—including with prediction markets—DraftKings determined that its plans no longer fully align with the AGA’s direction in certain areas and have decided to relinquish its membership,” added a DraftKings spokesperson.
The AGA also said in a statement it had accepted the companies’ “request to relinquish their membership”, adding: “We wish them the best, and we expect to maintain close ties to our mission to promote and protect legal, regulated gaming.”
Both FanDuel and DraftKings are also members of the Sports Betting Alliance (along with bet365, BetMGM and Fanatics Sportsbook) which carries out specific lobbying efforts on behalf of members, though the two companies will likely continue to lobby alongside the AGA to legalize traditional sports betting throughout the USA.