DraftKings and Flutter Entertainment (parent company of FanDuel) have officially resigned as members of the American Gaming Association (AGA), a significant industry shift driven by conflicting strategies regarding prediction markets.
The AGA, which has historically opposed the expansion of prediction markets into sports event contracts, accepted the immediate resignation of both major operators.
DraftKings issued a statement clarifying that its current business strategy no longer fully aligns with the AGA’s direction in certain key areas.
Similarly, FanDuel’s statement explicitly noted that its planned expansion into prediction markets does not align with the AGA’s established priorities for its member operators.
Both DraftKings and FanDuel have indicated plans to launch their respective prediction market offerings between late 2024 and early 2026.
This strategic divergence follows both companies voluntarily surrendering their Nevada gaming licenses due to conflicts with state regulators centered on this very issue.
The Nevada Gaming Control Board considers prediction markets unlawful and remains in litigation with operators like Kalshi over regulation.
Prediction market proponents argue that oversight falls under the federal US Commodity Futures Trading Commission (CFTC) rather than requiring state-level sports betting licenses.
This complex regulatory battle continues to unfold, with other state gaming regulators also embroiled in legal disputes and issuing cease-and-desist letters to prediction market operators.
