FanDuel And DraftKings On Tuesday, they announced they were leaving the American Gaming Association, the leading trade organization representing casinos, game makers and sportsbooks.
In separate announcements, the companies said they were abandoning their AGM membership because the focus of online betting – increasingly linked to booming prediction markets – did not fit with the commercial organisation, they said.
It’s the latest escalation in a growing divide in the gaming world as prediction platforms like Kalshi and Polymarket, which allow customers to trade on events in pop culture, news and politics, skyrocket in popularity and move into sports.
The AGA has taken a strong stance against prediction markets offering sports betting. He plans to introduce a resolution at a board meeting Tuesday that would exclude from membership any company offering prediction markets, according to people familiar with the matter who declined to be named speaking about internal matters.
Last week, Flutter-owned FanDuel announced that it would launch a prediction platform called FanDuel Predicts in December in partnership with the CME. It plans to offer sports prediction exchanges only in states where sports betting is not legal.
“We recognize that this direction is not aligned with the American Gaming Association’s current priorities for its member operators. After careful consideration, we have decided to withdraw from our AGM 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 evolves, particularly with forecast markets, DraftKings has determined that its plans no longer fully align with the direction of the AGM in certain areas and has decided to relinquish its membership,” a DraftKings spokesperson told CNBC.
The AGA represents both commercial and tribal members, sometimes with competing interests.
The professional organization said in a statement that it had accepted FanDuel and DraftKings’ “request to relinquish their membership.”
“We wish them the best and hope to maintain strong ties to 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.