DraftKings and FanDuel Exit American Gaming Association Over Prediction Market Clash

DraftKings and FanDuel quit the American Gaming Association in November 2025, leaving the industry's main trade group weeks before they launched their prediction market platforms.

The AGA had criticized prediction markets in public, arguing that sports event contracts amount to unregulated gambling. The group said those contracts undercut the state-licensed sports betting framework that the industry has built since the Supreme Court struck down PASPA in 2018.

The departures pull two of the largest online sports betting operators out of the association, which represents commercial casinos, tribal gaming interests, and gaming suppliers in Washington. Flutter Entertainment, FanDuel's parent, and DraftKings had both been prominent AGA members during the post-PASPA expansion.

The fight over prediction markets points to a deeper rift in legal gambling. Land-based casino operators, especially those with Las Vegas properties, have opposed the rise of exchange-style betting that skips state regulators and gaming taxes. Caesars and MGM have stayed out of prediction markets and have been cautious about the regulatory risks.

DraftKings and FanDuel read the situation differently. They view prediction markets as a way to grow in states where traditional sports betting is still illegal, including California, Texas, Florida, and Georgia. By treating event contracts as financial instruments under CFTC jurisdiction, they can offer sports-related products without state licenses.

Nevada regulators have taken the hardest line. Both Flutter and DraftKings gave up their Nevada gaming privileges rather than drop their prediction market plans. Other states are watching.

The AGA still represents a broad coalition of gaming interests. But losing two operators that together control more than 60% of U.S. online sports betting leaves a real gap. How the association handles the prediction market debate, and whether other operators follow DraftKings and FanDuel out the door, will shape industry politics through 2026.

Neither DraftKings nor FanDuel has commented publicly on the departures beyond confirming that they happened.