DraftKings and FanDuel Exit American Gaming Association Over Prediction Markets Dispute
In a significant shift within the sports betting industry, DraftKings and FanDuel have withdrawn from the American Gaming Association (AGA) as of November 17, 2025. The primary reason for this departure is a fundamental disagreement over the regulation of prediction markets. These operators, among the largest in the U.S., plan to launch their own prediction market platforms, which the AGA views as akin to illegal sports betting, according to Freedomx.
📌 Key Takeaways
- DraftKings, FanDuel exit AGA on November 17, 2025.
- DraftKings, FanDuel pursue CFTC-regulated prediction markets.
- Nevada regulators oppose prediction markets, revoke licenses.
FanDuel and DraftKings Pursue CFTC-Regulated Prediction Market Platforms
DraftKings and FanDuel are seeking to establish prediction market platforms regulated by the Commodity Futures Trading Commission (CFTC), setting the stage for a new chapter in their business strategies. According to Yogonet International, this move comes after both operators surrendered their Nevada licenses, as state regulators deemed these platforms incompatible with existing gambling policies. The CFTC's involvement suggests a potential shift in how these platforms might be regulated at the federal level.
Nevada Regulators' Stance on Prediction Markets
Nevada regulators have expressed concerns about prediction markets, arguing that they disrupt traditional gambling models and evade state gambling taxes. As highlighted by the Las Vegas Sun, the incompatibility of prediction markets with state policies has led to DraftKings withdrawing all pending applications related to sports wagering in Nevada, and Flutter Entertainment, which owns FanDuel, surrendering its licenses in the state.
Impact on the American Gaming Association and Industry Dynamics
The departure of DraftKings and FanDuel from the AGA signals a potential unraveling of the unified front that licensed operators have maintained against unlicensed forms of gaming. The AGA maintains that prediction markets should be subject to the same regulatory requirements as traditional sportsbooks to ensure consumer protection, as reported by Regulatory Oversight. This rift may lead to a redefinition of industry alliances and regulatory approaches.
Potential Benefits ofofferef="/guides/bonus-hunting-guide">offeriction Markets
Despite regulatory challenges, prediction markets offer substantial benefits for sports betting operators. As described by Sports Betting Soft, these markets provide real-time insights into market trends and public sentiment, aiding operators in making informed decisions and managing risks. They also offer a diversified revenue stream, making them an attractive option for innovative operators.
| Operator | Regulatory Body | Current Status |
|---|---|---|
| DraftKings | CFTC | Developing prediction market platform |
| FanDuel | CFTC | Developing prediction market platform |
| AGA | State Regulators | Opposing prediction markets |
Future Implications for the Sports Betting Industry
The exit of these major operators from the AGA could catalyze regulatory changes in the sports betting landscape. Should CFTC-regulated prediction markets gain traction, they may redefine how sports betting is perceived and regulated. According to Action Network, this division highlights the tension between innovation and regulation in the U.S. gaming sector, with possible implications for consumer protection and market dynamics.
- Operators like DraftKings and FanDuel are exploring new regulatory frameworks.
- The split may encourage more operators to consider prediction markets.
- State regulators and the AGA may need to reevaluate their positions on prediction markets.
