On November 17, 2025, FanDuel and DraftKings officially announced their departure from the American Gaming Association (AGA), marking a pivotal moment in the evolving landscape of sports betting and gaming. Both companies are intensifying their focus on sports prediction markets, signaling a new direction that diverges from the AGA’s position on these markets.
The decision was unveiled by The Closing Line, revealing a significant shift in the relationship between two of the most prominent sportsbook operators and the industry’s principal trade association. This move follows both companies’ third-quarter earnings calls, where they highlighted prediction markets as a cornerstone for future product innovation.
FanDuel’s strategic exit from the AGA highlights its longstanding approach of embracing new and emerging formats within the gaming industry. This departure underlines its commitment to innovation and seizing new opportunities. DraftKings also communicated that its evolving business objectives no longer align with the AGA’s current initiatives. Consequently, both companies have requested the termination of their memberships with immediate effect, a request that the AGA has acknowledged.
Despite the break, the AGA has expressed its intent to continue fostering cooperative relations with FanDuel and DraftKings, emphasizing its ongoing dedication to advocating for regulated gaming nationwide.
The rise of prediction markets has been a notable trend over the past year, gaining momentum due to the success of platforms like Kalshi. With Kalshi reporting over a billion dollars in weekly trading volumes on sports-related contracts, the scene is akin to a sports betting exchange. This surge, however, has not escaped regulatory scrutiny. Several state agencies have issued cease-and-desist orders to prediction market operators, citing violations of state laws against unregulated sports wagering.
FanDuel has consistently positioned itself as a trailblazer in the industry, rapidly advancing from daily fantasy sports to mobile sports betting and now to prediction markets. Their focus remains on delivering what consumers desire while maintaining unwavering integrity.
The AGA has responded to these developments with a clear stance. In a statement issued on Tuesday, the association conveyed its best wishes to both companies while reaffirming its mission to promote and safeguard legal, regulated gaming. Established in 1994, the AGA brings together legal casino operators, online and tribal gaming entities, suppliers, service providers, and other industry stakeholders, focusing primarily on legislative and regulatory issues and providing essential data on sports betting and iGaming in the US.
Despite its comprehensive role, the AGA, along with several of its members, has expressed opposition to prediction markets. They argue that contracts linked to sports events compromise the integrity of regulated betting. Recently, the AGA condemned the NHL for partnering with companies like Kalshi and Polymarket, stating that no professional sports league should associate with entities that defy state laws and consumer protection standards.
The AGA’s president and CEO, Bill Miller, underscored these concerns last month, expressing doubt about the future of these platforms. Legal challenges in multiple states, along with the views of numerous attorneys general and state regulators deeming these platforms illegal, highlight the uncertain future of prediction markets. “This move sends a troubling message: that integrity, responsibility, and clear legality are optional in sports gaming,” Miller remarked.
While FanDuel and DraftKings chart a new course in the prediction market space, the broader industry remains divided. Some argue that these markets represent the next evolution in sports betting, offering consumers innovative ways to engage. However, concerns over regulatory compliance and the potential risks to the integrity of sports wagering persist.
The contrasting perspectives on prediction markets underscore a larger conversation within the gaming industry about innovation versus regulation. As companies like FanDuel and DraftKings push boundaries, the industry must navigate the delicate balance between embracing new opportunities and ensuring compliance with legal standards.
In conclusion, FanDuel and DraftKings’ departure from the AGA underscores a transformative period in sports betting. As these companies pursue prediction markets, the industry must grapple with the potential benefits and pitfalls of this emerging sector. The dialogue between innovation and regulation will continue to shape the future of gaming, highlighting the dynamic and ever-evolving nature of the industry.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
4.2/5Instant Casino
Up to 10% cashback
