The gambling industry’s biggest players just walked away from its most powerful trade group, exposing a deep fracture over the future of betting. On November 18, 2025, FanDuel and DraftKings announced their immediate resignation from the American Gaming Association (AGA), the influential lobby that helped legalize sports betting nationwide. The trigger? A fundamental disagreement on prediction markets, the fast-growing platforms letting users wager on real-world events like elections, economic data, and now sports outcomes.
This high-stakes split, first reported by InGame, came just days after heated discussions at the AGA’s Public Policy Committee meeting in Washington, D.C. Sources say the rift widened during an executive session where DraftKings and FanDuel defended their pivot into prediction markets—event contracts regulated by the Commodity Futures Trading Commission (CFTC) rather than state gaming commissions. The AGA, representing casinos, tribal operators, and traditional sportsbooks, views these tools as unregulated gambling in disguise, blurring lines with sweepstakes and threatening the industry’s hard-won regulatory framework.
FanDuel, owned by Flutter Entertainment, didn’t mince words in its statement. “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,” a spokesperson told CNBC. “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.” The company plans to launch FanDuel Predicts in December, partnering with the Chicago Mercantile Exchange to offer sports-inclusive contracts in states without legal online sports wagering.
DraftKings echoed the sentiment, citing its recent $100 million acquisition of Railbird, a federally licensed event-contracts platform. “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,” the Boston-based operator said. DraftKings Predictions is slated for an early 2026 debut, targeting sports events to capitalize on the model’s explosive growth. Prediction platforms like Kalshi and Polymarket have surged in popularity, with trading volumes hitting billions during the 2024 election cycle, drawing tech-savvy users beyond traditional bettors.
The AGA, led by CEO Bill Miller, accepted the resignations “effective immediately” but wasted no time underscoring its stance. In a spring letter to the CFTC, the group warned that sports prediction markets could erode consumer protections and invite unlicensed activity. It has also urged major leagues like the NHL to avoid partnerships with these platforms, labeling them as thinly veiled sports betting. “The AGA remains committed to responsible gaming and a regulated market that protects consumers,” the organization stated, hinting at an upcoming resolution to formalize its opposition.
This exodus is a seismic blow to the AGA, which credits itself with overturning the 1992 federal sports betting ban through PASPA repeal in 2018. FanDuel and DraftKings command over 80 percent of the U.S. sports betting market, generating billions in revenue and wielding unmatched brand power. Their departure shrinks the group’s lobbying muscle in D.C., where it shapes everything from tax policies to advertising rules. Legacy players like Caesars, MGM, and Penn Entertainment, who dominate AGA membership, have steered clear of prediction markets, prioritizing casino and retail stability over digital disruption.
For the innovators, the move signals bold independence. Both companies retain seats in the Sports Betting Alliance (SBA), a more targeted group focused on online wagering advocacy. Yet risks loom: regulators in states like Nevada have already flagged their platforms as “unlawful,” prompting DraftKings and Flutter to withdraw sports betting licenses there last week. Critics warn that alienating the AGA could invite scrutiny, especially as prediction markets test boundaries between futures trading and gambling.
The timing couldn’t be more charged. With Q3 2025 earnings fresh—DraftKings reporting $1.1 billion in revenue, FanDuel’s parent Flutter hitting $3.3 billion—the duo is betting big on diversification amid slowing sports betting growth. Prediction markets promise higher margins and global reach, unencumbered by state-by-state approvals. As one industry analyst put it, “This isn’t just a resignation; it’s a declaration of war on the old guard.”
In the end, FanDuel and DraftKings aren’t quitting the game—they’re rewriting the rules. Whether this sparks innovation or invites backlash, one thing is clear: the $150 billion U.S. gaming market is entering its most volatile chapter yet, with prediction markets at the epicenter.
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