FanDuel and DraftKings have left the American Gaming Association (AGA) over their respective decisions to offer prediction markets in some the US states in the coming weeks.

Reports from InGame and the TCL noted the decision from the US gambling giants came after an AGA committee meeting in Washington DC yesterday, 17 November.

The AGA’s stance on prediction markets has been resolute, with CEO Bill Miller repeatedly slamming the likes of Kalshi and Robinhood for offering sports event contracts.

In a keynote speech at G2E in Las Vegas last month, Miller described prediction markets as “greedy, reckless and irresponsible”, in what was a wide-ranging swipe that included sweepstakes firms and offshore operators.

FanDuel, which is owned by Flutter, is set to launch FanDuel Predicts next month in partnership with CME Group.

DraftKings Predictions is due to go live soon too, after the Boston-based firm acquired Railbird.

Both operators will offer sports event contracts in US states that don’t currently have legalised sports betting.

The duo will also offer cultural and financial markets, such as the price of oil and gold, across the US.

FanDuel relinquished its Nevada licence while DraftKings pulled its application in the Silver State after the decision to move into prediction markets.

The Nevada Gaming Control Board said the two operators were preparing to “engage in unlawful activities related to sports event contracts”.

The AGA membership includes US-facing operators, tribal entities, suppliers, testing labs and state associations.

Entain and MGM Resorts International, whose JV BetMGM has stated it will not head into prediction markets, are members, as is bet365, Fanatics, Rush Street Interactive and PENN Entertainment.

A FanDuel spokesperson said: “FanDuel has built our business by maintaining strong industry partnerships. We value the spirit of collaboration that comes with these relationships.

“But as we expand into prediction markets, we recognise this direction is not aligned with the American Gaming Association’s current priorities for its member operators.

“After thoughtful consideration, we have decided to step back from our AGA membership at this time.”

A DraftKings spokesperson added: “As the company’s business strategy evolves – including with prediction markets –DraftKings determined that its plans no longer fully align with the AGA’s direction in certain areas and has decided to relinquish its membership.”

On the resignations, the AGA said: “In discussion with DraftKings and FanDuel, the AGA has accepted their request to relinquish their memberships, effective immediately.

“We wish them the best, and we expect to maintain close ties in our mission to promote and protect legal, regulated gaming.”

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