FanDuel and DraftKings leave American Gaming Association to pursue prediction markets

• FanDuel and DraftKings have resigned from the AGA as they pivot towards large-scale prediction market products in the US.​
• The move follows growing public criticism of prediction markets from AGA leadership and increased tension over regulatory models.​
• Both operators are now aligning more closely with federal derivatives rules than with traditional state-by-state casino regulation.

FanDuel and DraftKings have officially stepped away from the American Gaming Association (AGA) as they pursue federally regulated prediction markets that sit outside the traditional US casino and sportsbook framework.

Their exit reflects a growing split between legacy gaming interests and operators moving aggressively into event contracts regulated by the Commodity Futures Trading Commission (CFTC)​.

FanDuel and DraftKings leave AGA

DraftKings and FanDuel have both resigned their membership of the AGA, the main national trade body for the US casino and regulated betting industry. The departures come as the two companies prepare to scale prediction markets that many AGA members view as direct competitors to state-regulated sportsbooks and casinos.​

According to industry reports, the resignations were communicated shortly after FanDuel’s parent company Flutter and DraftKings clashed with state regulators over sports event contracts, particularly in Nevada.

The AGA has previously taken a sceptical line on prediction markets, arguing they exploit regulatory gaps and bypass consumer protections embedded in state gaming laws.​

Rising tension over prediction markets

AGA chief executive Bill Miller has been one of the most vocal critics of prediction markets and CFTC-regulated event contracts.

Speaking at last month’s G2E conference in Las Vegas, he described state and tribal gaming as “a system founded on a regulatory approach that upholds the public interest and looks out for consumers” and criticised unaligned operators.​

Miller went on to say that prediction market platforms he views as outside this framework are “free riders” that “thumb their nose at this approach to gaming”.

Those comments were widely read as a direct reference to firms such as Kalshi and Polymarket, and to the direction of travel for FanDuel and DraftKings. Although no public AGA statement has explicitly linked Miller’s remarks to the two sportsbook giants, industry coverage has consistently framed the resignations as connected to this widening policy divide.​

Strategic focus on federal oversight

Both FanDuel and DraftKings are now building prediction market products structured as CFTC-regulated event contracts, rather than state-licensed sports wagers.

FanDuel is rolling out FanDuel Predicts through its partnership with CME Group, initially in US states that do not yet permit mobile sports betting. DraftKings is preparing its DraftKings Predictions platform after acquiring CFTC-registered operator Railbird, positioning the business to offer contracts on sports, pop culture, politics and financial outcomes.​

These models place the companies squarely in a federal derivatives regime, where supervision comes from the CFTC and the National Futures Association instead of state gaming boards and AGA-aligned casino operators. That shift effectively reduces the influence of traditional casino and sportsbook lobby structures over their new growth verticals.​

Impact on US gaming politics

By stepping away from the AGA, FanDuel and DraftKings lose a prominent platform inside Washington’s main casino and sports betting lobby, but they gain strategic freedom to argue for prediction markets on separate legal grounds. Their departure may also harden the AGA’s stance as it seeks to protect members invested heavily in state-licensed land-based and online operations.​

For operators and investors, the split highlights how US wagering is fragmenting between state-based gaming models and federally supervised event contract markets.

Over the next few years, the industry is likely to see sharper debate in Congress, at the CFTC and in state legislatures over where prediction markets sit, how they are taxed, and whether they should compete directly with sportsbooks or be ring-fenced as a separate product class.

Sources: Yahoo, Global Gaming News, Covers, Business Insider