Recently, FanDuel and DraftKings left the American Gaming Association in the middle of a difference of opinion on prediction markets.
The United States sports betting industry is at a crossroads.
FanDuel and DraftKings, two biggest sportsbook of the country, are charting a separate path from the American Gaming Association. It is one of the most prominent industry advocacy groups. Both sides continue to push for legalized, regulated sports betting nationwide.
Just like they previously withdrew from Las Vegas, DraftKings and FanDuel left the AGA. This is after it became clear that their entry into prediction markets put them at odds. Soon, both sports betting giants will launch prediction-markets platforms. According to FanDuel, its app will come online in December. Meanwhile, DraftKings stated its own platforms will be available in the coming months.
In a statement, an AGA spokesperson said that on Tuesday, the organization accepted requests from DraftKings and FanDuel to relinquish their membership. The change is effective immediately.
The AGA spokesperson said they wish DraftKings and FanDuel the best. They also expect to maintain close ties in their shared mission to promote and protect legal, regulated gaming.
For both FanDuel and DraftKings’ representatives confirmed the companies decided to split from the AGA.
The AGA, along with a growing number of state regulators, has raised concerns that prediction markets bypass established gambling laws. They warn that this exposes consumers to products outside the traditional regulatory framework. On its website, the advocacy group states that prediction markets openly flout state and tribal oversight by offering contracts on sports events.
Despite the separation, both sides share common ground: they ultimately want sports betting to be legalized and regulated nationwide. Both DraftKings and FanDuel will launch sports event contracts in states where online sports betting is illegal. FanDuel has specified that these contracts will only be available in certain states. They will no longer be offered once a new state legalizes online sports betting.
