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The departures come as the AGA launched a new tracker calculating revenue and tax losses attributed to prediction markets offering sports contracts, which the association claims constitute illegal sports betting. Both FanDuel and DraftKings recently announced plans to launch their own prediction market platforms, putting them at odds with the trade group’s position.
AGA Opposition to Sports Prediction Markets
The American Gaming Association has taken a firm stance against prediction markets that offer sports-related contracts, arguing these operations function as unregulated sports betting. A study commissioned by the AGA and released in September 2025 found that 85% of American adults consider sports event contracts to be gambling. Approximately 80% of respondents agreed that state gaming regulators, rather than federal financial regulators, should oversee the buying and selling of shares related to sporting event outcomes.
“Americans know a sports bet when they see one, and they expect prediction markets offering sports event contracts to be held to the same rules and consumer safeguards as every other state-regulated sportsbook.”
Bill Miller, president and CEO of the AGA, emphasized the organization’s view that sports prediction markets should face the same regulatory oversight as traditional sportsbooks.
Official Statements on Membership Withdrawals
All three parties released statements addressing the membership dissolutions. The AGA confirmed it had accepted both operators’ requests to relinquish their memberships, stating: "We wish them the best, and we expect to maintain close ties to our mission to promote and protect legal, regulated gaming."
DraftKings cited evolving business strategies as the reason for its departure. "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 has decided to relinquish its membership," the company stated.
FanDuel acknowledged the directional misalignment with the trade organization. "We recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operations. After thoughtful consideration, we have decided to step back from our AGA membership," according to FanDuel’s statement.
Industry Impact
The withdrawal of FanDuel and DraftKings represents a notable development for the AGA under Bill Miller’s leadership. The two operators hold the strongest brand recognition in the US sports betting and iGaming market. Their commitment to entering the prediction markets space could impact the AGA’s influence as the sector develops.
Prediction Market Plans
Both operators plan to launch prediction market platforms in the coming weeks. FanDuel Predict and DraftKings Predict will enter a market that has generated debate about regulatory classification and oversight jurisdiction.
The companies maintain that prediction markets involving sports contracts do not constitute gambling activities, a position that directly contradicts the AGA’s stance.
Daily Fantasy Sports Precedent
This disagreement echoes earlier industry tensions when FanDuel and DraftKings operated primarily as daily fantasy sports platforms. Both companies argued that their contests were skill-based activities similar to poker, rather than gambling.
The operators faced legal challenges during that period, including a $3 billion complaint filed by the New York Attorney General alleging deceptive advertising claims about winning potential. That case was settled for $12 million.
The current prediction markets dispute represents another instance where the two operators have pursued business models that diverge from mainstream gaming industry positions.
Source: Casino.org
