DraftKings and FanDuel Exit American Gaming Association Over Prediction Markets Dispute

DraftKings (DKNG) and FanDuel, two of the most prominent players in the U.S. sports betting industry, have severed ties with the American Gaming Association (AGA). The departure stems from a clash over prediction markets—a burgeoning sector both companies are aggressively pursuing. "As we expand into prediction markets, we recognize this direction is not aligned with the AGA’s current priorities," FanDuel, a Flutter Entertainment (FLUT) subsidiary, stated bluntly.

The MOVE is striking given the AGA’s outsized influence in gaming regulation and its pivotal role in dismantling the federal sports betting ban in 2018. The lobby group’s annual Global Gaming Expo in Las Vegas remains a cornerstone event for industry networking and policy shaping. Yet DraftKings and FanDuel are betting their futures on blockchain-adjacent markets, even at the cost of losing access to the AGA’s political machinery.

Prediction markets—where users wager on event outcomes like elections or commodity prices—have long been a gray area in U.S. gaming law. Their potential convergence with decentralized finance (DeFi) platforms could create regulatory headaches, but also lucrative opportunities. The exits suggest a growing rift between traditional gambling operators and firms embracing crypto-native business models.