DraftKings and FanDuel are leaving the powerful gambling industry lobbying group, the American Gaming Association. The group has opposed the spread of prediction markets.
A FanDuel spokesperson told Barron’s that the company is expanding into prediction markets. They recognize that this direction does not align with the American Gaming Association’s current priorities for its member operators. After thoughtful consideration, they have decided to step back from their AGA membership at this time.
A DraftKings spokesperson told Barron’s that, given its focus on prediction markets, the company determined its plans no longer fully align with the AGA’s direction in certain areas. As a result, DraftKings decided to relinquish its membership.
The AGA is a titan in the betting world. It also hosts the annual Global Gaming Expo (G2E) in Las Vegas. It’s one of the largest gambling industry lobbying groups located in Washington DC. The AGA fought hard to overturn the federal restriction on sports betting. It filed amicus briefs to the Supreme Court supporting a 2018 ruling that removed sports betting from federal control. This decision enabled DraftKings and FanDuel to rise as an online sports betting duopoly in the United States.
Prediction market firms like Kalshi, offering federally regulated event contracts, began to rise. This challenged DraftKings and Flutter Entertainment, the parent company of FanDuel. These developments helped expand sports betting nationwide after years of rapid industry growth. While the S&P 500 has climbed 13%, respectively, shares of DraftKings and Flutter this year have dropped 21% and 24%.
The AGA has consistently opposed the rise of prediction markets. Bill Miller, the CEO of the group, said in a keynote address at the Global Gaming Expo in October 2025 that prediction markets attempt to blur the lines. They call it investing, sweepstakes, skill games, or sports event contracts—anything but what it really is: gambling.
