DraftKings and FanDuel exit AGA and Nevada to advance CFTC-regulated prediction platforms

DraftKings and FanDuel have taken coordinated compliance steps by surrendering their Nevada licenses and leaving the American Gaming Association (AGA) as they prepare to launch CFTC-regulated prediction market platforms that conflict with Nevada’s stance on sports event contracts.

Nevada regulators said both companies’ upcoming prediction market operations were incompatible with state policies governing licensed operators. The Nevada Gaming Control Board accepted Flutter Entertainment’s surrender of its Order of Registration and all related approvals, including those connected to FanDuel Sportsbook. The Board also granted administrative approval for DraftKings to withdraw all pending applications tied to its interests in sports wagering in the state.

“It has been made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts. This conduct is incompatible with their ability to participate in Nevada’s gaming industry,” the Board stated.

“Our views of the current opportunity for prediction markets outside of regulated states are unfortunately in direct opposition to Nevada’s priorities for its licensed operators,” said FanDuel spokesperson Alex Pitcocchelli. “As a result, we are making the difficult decision to voluntarily surrender our license.”

“As part of our ongoing commitment to regulatory compliance, we have withdrawn our inactive application in Nevada,” said Jen Aguiar, DraftKings’ chief compliance officer. “Prediction markets are federally regulated by the Commodity Futures Trading Commission, and we remain dedicated to working collaboratively with regulators to uphold the highest standards of integrity in our operations.”

Their licensing withdrawal coincided with their decision to exit the AGA. After meetings at the AGA’s Public Policy Committee session in Washington, D.C., the companies informed the association that they would give up their memberships. The AGA confirmed the move.

“In discussion with DraftKings and FanDuel, the AGA has accepted their request to relinquish their memberships, effective immediately,” an AGA spokesperson said. “We wish them the best, and we expect to maintain close ties in our mission to promote and protect legal, regulated gaming.”

FanDuel said its direction no longer matched the AGA’s priorities. “As we expand into prediction markets, we recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operators,” the company told InGame.

DraftKings issued a similar statement, noting that its business strategy, including prediction markets, “no longer fully align[s] with the AGA’s direction in certain areas.”

Both firms are preparing to launch new platforms that fall under federal oversight. FanDuel Predicts is set to roll out in December through a joint venture with CME Group. DraftKings is developing DraftKings Predictions after acquiring Railbird, a CFTC-approved platform, and plans to introduce it in the coming months.

DraftKings and FanDuel have said they will not operate prediction markets in legal sports betting jurisdictions and will geofence out tribal territories.

Other operators in the gaming segment, including PrizePicks and Underdog, are also moving into prediction markets, while traditional casino companies have not. DraftKings and FanDuel are expected to continue participating in sports betting legalization efforts through the Sports Betting Alliance, alongside BetMGM, bet365, and Fanatics Sportsbook.