FanDuel, DraftKings Drop AGA Trade Group Memberships

FanDuel and Kings Project He said Tuesday they were leaving the American Gaming Association, the leading trade organization representing casinos, gaming manufacturers and sports betting.

In separate announcements, the companies said they would give up their AGA memberships because the online betting trend – increasingly linked to burgeoning prediction markets – is not compatible with the trade organisation.

It is the latest escalation of a growing rift in the world of gambling as prediction platforms such as Kalshi and Polymarket, which allow clients to trade events across pop culture, news and politics, have risen in popularity and moved towards sports.

The AGA has taken a firm stance against prediction markets offering sports betting. It plans to introduce a resolution at Tuesday’s board meeting that would exclude from membership any company that offers prediction markets, according to people familiar with the matter who declined to be identified speaking on internal matters.

Last week, Flutter-owned FanDuel announced that it would launch a predictive platform called FanDuel Predicts in December in partnership with CME. It plans to offer sports predictions only in states where sports betting is illegal.

“We recognize that this trend is not consistent with the American Gaming Association’s current priorities for its member operators. After thoughtful consideration, we have decided to step back from our AGA membership at this time,” a FanDuel spokesperson told CNBC.

DraftKings recently acquired Railbird, which has a federal license to offer event contracts.

“As the company’s business strategy has evolved — including prediction markets — DraftKings has decided that its plans no longer fully align with the direction of the AGA in certain areas and has decided to discontinue its membership,” a DraftKings spokesperson told CNBC.

The AGA represents business and tribal members, sometimes with competing interests.

The trade organization said in a statement that it had accepted FanDuel and DraftKings’ request to “relinquish their membership.”

“We wish them the best, and expect to maintain close ties with our mission of promoting and protecting legal and regulated gaming.”

FanDuel and DraftKings are also represented by the Sports Betting Alliance, which conducts more specific lobbying and outreach efforts on behalf of sports betting operators.