DraftKings, FanDuel Withdraw From American Gaming Association Due to Prediction Markets Entry

• Both DraftKings and FanDuel have withdrawn from the American Gaming Association
• Decision stems from the companies entering the prediction markets
• Withdrawal is effective immediately

Based on their decision to enter the predictions market, DraftKings and FanDuel have both withdrawn from the American Gaming Association, effectively immediately.

Both sports betting companies based their decision to leave the American Gaming Association on their entry into the prediction markets, as their path forward into the new offerings does not align with the vision of the gambling association.

“In discussion with DraftKings and FanDuel, the AGA has accepted their request to relinquish their membership, effective immediately. We wish them the best, and we expect to maintain close ties in our mission to promote and protect legal, regulated gaming,” an AGA spokesperson said.

Prediction Markets Are New Frontier

DraftKings and FanDuel are both gearing up to offer prediction market contracts – including sports event contracts – to users before the year is out. The companies have noted they will not offer sports event contracts in states where sports betting is legal, and will do so in a way that is thoughtful of all stakeholders involved.

DraftKings Predictions will launch “in the coming months” as a standalone app. In late October, DraftKings acquired Railbird Technologies Inc, a federally licensed exchange designated by the Commodity Futures Trading Commission (CFTC), to enter the predictions market.

A DraftKings spokesperson told Sports Betting Dime in a released statement that its plans “no longer fully align” with the AGA’s direction.

“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 have decided to relinquish its membership.”

FanDuel’s own prediction market service, FanDuel Predicts, will be launched in December as a standalone app. Similarly to DraftKings, a FanDuel spokesperson said in a released statement to Sports Betting Dime that its vision regarding the prediction markets is not in line with the AGA.

“FanDuel has built our business by maintaining strong industry partnerships. We value the spirit of collaboration that comes with these relationships. But as we expand into prediction markets, we recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operators. After thoughtful consideration, we have decided to step back from our AGA membership at this time. FanDuel has always been the company that moves quickly, from daily fantasy to mobile sports betting to prediction markets. We build what consumers want and we operate with an unwavering commitment to integrity.”

Remain Members of Sports Betting Association

The AGA is not the main lobbying association for either of the companies. Both DraftKings and FanDuel remain members of the Sports Betting Alliance, which is the main lobbying association for both of the sports betting companies.

The Sports Betting Alliance represents the interests of DraftKings, FanDuel, Fanatics Sportsbook, BetMGM, and bet365.