FanDuel and DraftKings Ditch American Gaming Association for Prediction Markets
Posted on: November 18, 2025, 09:03h.
Last updated on: November 18, 2025, 09:10h.
- FanDuel and DraftKings are no longer AGA members
- The American Gaming Association represents the commercial and tribal gaming industries
- Prediction markets led to the companies’ split from the AGA
FanDuel and DraftKings have rescinded their memberships with the American Gaming Association (AGA).
On the heels of the AGA launching a new tracker that supposedly calculates the amount of revenue and taxes lost due to controversial prediction markets that are offering sports contracts, and the sportsbook leaders’ decision to launch their own PM platforms, DraftKings and FanDuel have exited the trade group. The AGA opposes prediction markets with sports-related contracts on the grounds that the operations equate to illegal sports betting.
A study commissioned by the AGA released in September found that 85% of American adults believe sports event contracts constitute gambling. About eight in 10 agreed that state gaming regulators, and not federal financial regulators, should oversee the buying and selling of shares related to sporting event outcomes.
“Americans know a sports bet when they see one, and they expect prediction markets offering sports event contracts to be held to the same rules and consumer safeguards as every other state-regulated sportsbook,” said Bill Miller, president and CEO of the AGA.
Mutual Exits
The AGA, DraftKings, and FanDuel each released statements on the membership dissolutions. The AGA confirmed it had accepted the sportsbook and iGaming operators’ “request to relinquish” their memberships.
We wish them the best, and we expect to maintain close ties to our mission to promote and protect legal, regulated gaming,” the AGA added.
DraftKings said the decision was due to differing opinions on PMs.
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 has decided to relinquish its membership,” the DraftKings release read.
FanDuel said its prediction market endeavor didn’t jibe with the AGA.
We recognize this [PM] direction is not aligned with the American Gaming Association’s current priorities for its member operations. After thoughtful consideration, we have decided to step back from our AGA membership,” FanDuel said.
FanDuel and DraftKings’ withdrawal is a major blow to the AGA and to Miller’s tenure. No sportsbook or iGaming company has better brand awareness than the two, and with prediction markets the talk of the industry, their betting on the emerging space could further reduce the AGA’s relevancy.
Daily Fantasy Sports Background
FanDuel and DraftKings disagree with the AGA that prediction markets involving sports contracts are gambling activities and plan to roll out FanDuel Predict and DraftKings Predict in the coming weeks. It isn’t the first time that DraftKings and FanDuel haven’t aligned with the gaming industry.
Long before sports betting went mainstream and the companies were primarily engaged in daily fantasy sports, the online platforms maintained that their contests were skill-based in nature, not unlike poker.
FanDuel and DraftKings were named in many lawsuits, including a $3 billion complaint brought by the attorney general in New York, alleging that the DFS pioneers deceived consumers by advertising false claims about players easily winning millions of dollars through fantasy sports. The case was settled for $12 million.
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