FanDuel announced its decision to leave the American Gaming Association (AGA) on November 18, 2025, after the trade group adopted a resolution that would prohibit membership for operators offering prediction markets. The move follows FanDuel’s partnership with the CME Group to launch a new prediction‑market platform, slated for release later this year.
The AGA’s resolution reflects the organization’s stance that prediction markets are effectively a form of illegal sports betting and should be regulated by state gaming authorities. FanDuel, in contrast, views prediction markets as a natural extension of its digital betting business and prefers the federal regulatory framework of the Commodity Futures Trading Commission (CFTC), which allows nationwide operation without navigating the 50‑state licensing maze. By stepping away from the AGA, FanDuel signals that its strategic focus on prediction markets outweighs the benefits of remaining in the trade group.
The decision opens the door for FanDuel to offer its new platform in states where traditional sports betting remains illegal, such as California, Texas, and Florida. It also positions the company to compete directly with existing prediction‑market platforms like Kalshi and Polymarket, while leveraging the CME Group’s deep market expertise. FanDuel’s exit coincides with a similar departure by DraftKings, underscoring a broader shift among digital‑first operators toward federal‑regulated products.
A FanDuel spokesperson said, “We value the spirit of collaboration that comes with industry partnerships, but as we expand into prediction markets, we recognize this direction is not aligned with the AGA’s current priorities. After thoughtful consideration, we have decided to step back from our AGA membership.” CEO Amy Howe added, “We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector, leveraging CME’s expertise to deliver a seamless, trusted experience.”
The move has already prompted regulatory scrutiny. FanDuel and DraftKings withdrew their Nevada gaming licenses, citing conflicts between their federal‑regulated contracts and state gambling law. Industry observers note that the split could deepen the divide between legacy casino operators—who largely comprise the AGA—and the digitally focused sports‑betting firms pushing into new product categories. The decision may also influence other operators’ strategic choices regarding federal versus state regulation.
In summary, FanDuel’s exit from the AGA marks a significant pivot toward prediction markets, reflecting a broader industry trend toward federal regulation and a willingness to challenge traditional casino‑centric advocacy. The company’s partnership with CME and its planned launch of “FanDuel Predicts” position it to capture new markets and reshape the competitive landscape of sports‑betting and prediction‑market offerings.
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