The Closing Line confirmed the exits on Monday night (17 November), which bring a major shift in the relationship between the nation’s two largest sportsbook operators and the industry’s primary trade group.
The departures follow statements in each company’s Q3 earnings reports indicating that prediction markets will become a core part of their product expansion.
The move places them at odds with the AGA, which has repeatedly argued that prediction markets should be regulated as gambling and adhere to the same licensing requirements as sportsbooks.
FanDuel said its decision reflects the company’s strategic direction, noting that it has historically moved quickly to adopt emerging formats.
DraftKings also pointed to evolving business priorities and said its plans no longer fully align with the AGA’s current focus.
The AGA confirmed both withdrawals and said it accepted their requests to relinquish membership immediately.
The association added that it expects to maintain working relationships with both companies as it continues advocating for regulated gaming nationwide.
Prediction markets have become an increasingly significant presence alongside the broader betting ecosystem over the past year, driven in large part by Kalshi’s rapid ascent.
The platform now sees more than a billion dollars traded weekly on sports-related contracts and operates in practice much like a sports betting exchange.
Since the start of the football season, more than 90% of Kalshi’s volume has involved sports outcomes.
That growth has accelerated regulatory scrutiny, however. Multiple state agencies have issued cease-and-desist letters to prediction market operators, arguing that unlicensed wagering on sports violates state gambling laws.
Ongoing challenges don’t stop growth
At the same time, federal and state legal challenges are testing the boundaries of prediction markets.
The legal outcomes may take years to resolve, and the current regulatory landscape remains fragmented.
In the interim, FanDuel and DraftKings faced a strategic choice: remain on the sidelines until courts or lawmakers provide clarity or enter the market now and compete directly with Kalshi and others.
Both companies opted to move forward, citing consumer demand and rapid market evolution. Their decision reflects a broader drive within the industry to capture new revenue streams even amid regulatory uncertainty.
Other companies have taken similar steps. PrizePicks and Underdog have introduced prediction market products, while crypto-based platforms, sweepstakes casinos and social media ventures have announced their own plans.
FanDuel, DraftKings move on from AGA
FanDuel first joined the AGA’s orbit in March 2021 when it became the first mobile sportsbook operator to partner with the AGA’s national responsible-gaming initiative, Have A Game Plan. Bet Responsibly.
The partnership marked FanDuel’s formal alignment with the trade group and signalled the company’s intent to position itself within the broader regulated gaming community as sports betting expanded rapidly across the US.
DraftKings followed a few months later, announcing in June 2021 that it would collaborate with the AGA to promote the same responsible betting campaign across its digital platforms and retail sportsbook locations.
That move brought DraftKings into closer coordination with the association and, at the time, reinforced its support for the AGA’s policy priorities at a time when the legal sports betting landscape was accelerating nationwide.
Dingnews.com 20/11/2025