FanDuel and DraftKings Exit the AGA

United States.– November 20, 2025 – www.zonadeazar.com  U.S.-based leading operators FanDuel and DraftKings have officially left the American Gaming Association (AGA) effective immediately, due to their strategy shift into prediction markets. 
The AGA accepted the departure request from both companies as they develop new prediction platforms, reflecting a major change from traditional sports betting operations toward broader wagering formats.

Overview

The departure of FanDuel and DraftKings from the AGA represents a turning point in the U.S. sports betting ecosystem. Both companies are redirecting their business models toward “prediction markets,” allowing trading of contracts on future events — from sports outcomes to political events — posing regulatory, strategic and reputational challenges. By stepping away from the traditional association, they formally signal their intention to explore new horizons in legal wagering.

Details / Context

DraftKings recently acquired the Railbird platform and plans to launch its prediction product in early 2026. A company spokesperson said that its business strategy “is no longer fully aligned” with the AGA’s direction.
FanDuel, part of Flutter Entertainment, announced a separate prediction markets platform launching in December in partnership with the CME Group, noting its expansion into this market diverged from the AGA’s priorities. 
The prediction markets segment has gained momentum, illustrated by Kalshi’s growth under the Commodity Futures Trading Commission (CFTC) in the U.S., adding tension to how such platforms fit within the regulated gambling model.

Sub-topics

  • Corporate strategy divergence: the exit highlights a clear divergence between operator roadmaps and the AGA’s institutional agenda.
  • Regulatory challenges in emerging markets: prediction markets face legal uncertainty, with some states classifying them as traditional gambling.
  • Integrity concerns: The AGA warned that entering this segment could undermine the integrity of regulated wagering, a critical issue for traditional operators.
  • Business model transformation: the move positions FanDuel and DraftKings beyond sports betting toward result-contract trading, altering competitive dynamics in the sector.

Future Outlook

This rupture may mark a structural change in U.S. betting. If prediction markets expand, we could see regulatory redesigns, strategic alliances and more departures from the AGA. Traditional operators will have to choose between remaining in the classic model or adapting to new wagering formats.
For Latin America, the U.S. case will serve as reference for how regulated platforms diversify and how regulators respond to hybrid betting-finance products. The regional iGaming industry must monitor regulatory shifts and global alliance developments.

🔗 Edited by: @_fonta www.zonadeazar.com

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