FanDuel, DraftKings quit AGA amid growing split over prediction markets
Summary
Major US sportsbook operators FanDuel and DraftKings have left the American Gaming Association (AGA) amid an industry rift over prediction markets. The split follows rapid growth in platforms such as Kalshi and Polymarket and the AGA’s proposed resolution to bar members that offer sports-based prediction contracts.
FanDuel is launching ‘FanDuel Predicts’ with CME, limited to states without legal sports betting. DraftKings has moved into prediction markets via its acquisition of Railbird, a federally licensed event-contracts platform. Both companies say their evolving business strategies no longer align with the AGA’s priorities. The AGA has accepted both departures and said it will continue to promote and protect regulated gaming. Both operators remain in the Sports Betting Alliance.
Key Points
- FanDuel and DraftKings have relinquished membership of the American Gaming Association.
- The departures stem from disagreement over prediction markets, especially sports-based contracts.
- FanDuel is launching FanDuel Predicts with CME, operating only where traditional sports betting is not legal.
- DraftKings has entered prediction markets through its purchase of Railbird, a federally licensed platform.
- The AGA is preparing a resolution to bar operators offering sports prediction contracts from membership; both firms remain in the Sports Betting Alliance.
Context and Relevance
The move highlights a broader industry realignment: prediction markets are growing fast and challenging existing regulatory and trade-group norms. Tribal and commercial operators — represented by the AGA — are clashing with firms that see new revenue and engagement opportunities in event contracts and federally licenced platforms.
For stakeholders in US gaming, regulation and media, this is more than a membership row: it signals how major operators are diversifying beyond traditional sportsbook models and could reshape lobbying, regulation and market partnerships going forward.
Why should I read this?
Quick and blunt — if you care about US sports betting, regulation or market strategy, this is a canary in the coal mine. Two of the biggest names have walked away from the AGA because prediction markets are changing the game. Read it if you want to know which way the industry’s moving and who’s likely to clash next.
Author style
Punchy: this story matters. If you work in betting, regulatory affairs or fintech, the details here could affect partnerships, lobbying and product launches — so don’t skip the specifics.