Over the past months, the American Gaming Association has been consistently revving up its anti-prediction markets rhetoric, which has now cost it two of its most prominent members.
FanDuel and DraftKings have decided for themselves that, while they oppose prediction markets in principle, these platforms seem likely to stay for the long haul, meaning that the companies need to adapt.
Both companies gave up their licenses in Nevada last week, citing regulatory scrutiny of prediction markets, and both are planning launches of dedicated prediction platforms, with FanDuel already confirming FanDuel Predicts, a standalone app.
Now, FanDuel and DraftKings have also left the largest industry trade group, as tensions rose over prediction markets internally, with AGA’s leadership refusing to back down from its position and commissioning several prominent research studies equating prediction markets to sports gambling, as originally reported by InGame, an industry media publication.
An AGA spokesperson has commented when contacted by Casino Guru News:
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"In discussion with DraftKings and FanDuel, the AGA has accepted their request to relinquish their membership, effective immediately. We wish them the best, and we expect to maintain close ties in our mission to promote and protect legal, regulated gaming."
Officially, the companies have confirmed as much, arguing that AGA and the businesses did not see eye-to-eye on the matter. No other publicly available information has been shared by the companies or the American Gaming Association.
Casino Guru News has reached out for comment to FanDuel, DraftKings, and the American Gaming Association. In the meantime, Kalshi, Robinhood, Crypto.com, PrizePicks, and Polymarket have grown more aggressive on prediction markets.
This comes amid a larger legal and regulatory challenge, with state attorneys general and gambling watchdogs challenging prediction markets’ right to offer sports event contracts in jurisdictions where sports betting is already regulated.
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