DraftKings and FanDuel Announce Their Exit From the AGA

The American Gaming Association picked up a pair of significant losses on Monday.

DraftKings sportsbook and the FanDuel sportsbook review stunned the gambling industry this week by announcing their plans to leave the AGA. The two operators own over 80% of the US sports betting market share, making them two of the lobby group’s most prominent members. The AGA confirmed they received and granted the requests to resign.

According to a report from InGame this week, the AGA executive committee met with DraftKings and FanDuel on Monday to discuss prediction markets. Both operators plan to launch prediction market platforms, including sports, within the next few months. The group has lobbied against the emerging industry, creating a conflict with two of its largest members.

The two sides couldn’t find any middle ground, leading the operators to submit their resignations after the discussion. 

While the operators and AGA issued respectful statements, questions swirl around what happened during those talks. Did FanDuel and DraftKings enter those talks prepared to resign, or did the debate go so poorly that the decision was made on the spot?

FanDuel and DraftKings remain a part of the Sports Betting Alliance (SBA) and have not indicated any plans to exit as of yet.

FanDuel, DraftKings at Odds With Gambling Industry

While prediction markets were the focus of the trio's discussions, there are other reasons for the industry leaders to exit the group. 

Over the last year, the AGA has been building its base with online sportsbooks, online casinos, and retail operators. While this gives them plenty of power, those subsectors of the gambling industry have conflicting interests. That has led to some vigorous debate within the group, limiting its ability to create a united front. By exiting the group, the operators can now solely focus on lobbying for their own interests. 

The question now is what will happen with DraftKings, FanDuel, and the SBA’s relationship. The two sportsbooks dominate the US market, but their decision to offer sports prediction markets is creating tension. The industry has fought these controversial markets, an effort that includes several other SBA members. 

If the group decides to continue its lobbying against sports prediction markets, it could prompt both operators to resign from the group.