FanDuel, DraftKings Exit American Gaming Association: Report

• The report added that the AGA has taken a firm stand against prediction markets offering sports betting.
• Last week, DraftKings and Flutter Entertainment withdrew their application and license, respectively, to offer online sports betting in Nevada.
• Shares of DraftKings and Flutter Entertainment have been under pressure in recent months following disruptions from prediction market firms such as Kalshi and Polymarket.

FanDuel and DraftKings reportedly said on Tuesday that they are withdrawing from the American Gaming Association (AGA), the primary trade group representing casinos and sportsbooks.

According to a CNBC report, the companies, in separate statements, said they were letting their AGA memberships lapse due to the direction of online betting, primarily tied to booming prediction markets. 

The report added that the AGA has taken a firm stand against prediction markets offering sports betting. It plans to introduce a resolution at a board meeting on Tuesday that would exclude from membership any company that provides prediction markets, the report noted, citing people familiar with the matter.

Nevada Application Withdrawal

Last week, DraftKings and Flutter Entertainment withdrew their application and license, respectively, to offer online sports betting in Nevada.

“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,” Nevada’s Gaming Control Board said, according to a Bloomberg report.

“This conduct is incompatible with their ability to participate in Nevada’s gaming industry,” the board had said.

Prediction Market Competition

Shares of DraftKings and Flutter Entertainment have been under pressure in recent months following disruptions from prediction market firms such as Kalshi and Polymarket, which typically offer customers better odds and deeper order books.

DraftKings stock has fallen nearly 34% in the last 12 months, while shares of Flutter Entertainment have declined nearly 26% in the same period.

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