FanDuel and DraftKings split with AGA over prediction markets debate
FanDuel and DraftKings and the American Gaming Association (AGA) don’t see eye to eye on sports prediction markets, and the crack in the foundations has become a full split.
The two biggest online sportsbooks in the U.S. resigned from the AGA on Monday, as first reported by Jill Dorson of InGame.
As the duo prepares to launch sports event contracts in states where legal online sports wagering is unavailable, they say their plans no longer align with the association’s stance on sports prediction markets, making their membership untenable.
AGA not bending on anti-prediction market stance
Earlier this month, DraftKings confirmed that sports will be included in some states in its launch of DraftKings Predictions “in the coming months.” Days later, Flutter announced that FanDuel Predicts is coming, sports and all, in December.
Both have spent several years as members of the AGA, whose rhetoric on prediction markets has been firmly oppositional. The association sent a letter to the Commodity Futures Trading Commission (CFTC) in the spring about prediction markets, has published surveys that effectively label them as sports betting, and recently wrote to several major leagues to discourage partnerships such as the NHL’s deals with Kalshi and Polymarket.
That stance simply does not line up with what FanDuel and DraftKings want to do anymore.
“FanDuel has built our business by maintaining strong industry partnerships. We value the spirit of collaboration that comes with these relationships,” a spokesperson from the operator told SBC Americas. “But as we expand into prediction markets, 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.
“FanDuel has always been the company that moves quickly, from daily fantasy to mobile sports betting to prediction markets. We build what consumers want and we operate with an unwavering commitment to integrity.”
A DraftKings spokesperson added to SBC Americas that it determined that its plans “no longer fully align with the AGA’s direction in certain areas.”
The AGA told SBC Americas that it accepted the operators’ resignations on Monday, but that it expects to maintain close ties with the pair in its mission to promote and protect legal, regulated gaming.
First Nevada, now America
The AGA has hardly been alone in sounding the alarm about sportsbooks getting into prediction markets. Several state regulators are waging legal battles with Kalshi, Robinhood and Crypto.com over the legality of their sports offerings. Some regulatory bodies have gone so far as to warn licensees that partaking in sports contracts could threaten their suitability in the state.
Still, FanDuel and DraftKings seem to have concluded that, though uncertainty over the long-term viability and legality of sports contracts remains, there’s an immediate opportunity to grow revenue and expand their total addressable market.
One of the opposing states was Nevada, where DraftKings does not operate and FanDuel had only a peripheral presence as a supplier. Last week, both operators relinquished their claims to licensure in the Silver State.
The two other online gaming operators to have made moves into sports prediction markets, daily fantasy sports-rooted PrizePicks and Underdog, are not members of the AGA.
FanDuel and DraftKings will continue to lobby on behalf of the sports betting industry at a state-by-state level through their work with the Sports Betting Alliance, as well as from within their own organizations. At the federal level, FanDuel hired two experienced political strategists in July to strengthen its hand in national discussions of gaming issues.
https://sbcamericas.com/2025/11/18/fanduel-draftkings-split-from-aga/