The top two online gaming operators in the country, DraftKings and FanDuel, are no longer members of the industry’s main lobbyist and trade group.
Both companies withdrew from the American Gaming Association on Monday. It is the latest step in both companies breaking from traditional gaming operators to enter the world of predictions after the two withdrew from Nevada last week.
The AGA wants sports events contracts to fall under the same regulations as online sports betting. In September, the group released survey results showing 85% of respondents found those contracts are most like gambling compared to 6% that said the contracts are most like a financial instrument.
“In discussion with DraftKings and FanDuel, the AGA has accepted their request to relinquish their membership, 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.”
Not a seismic change
Aside from DraftKings and FanDuel logos no longer showing up at AGA sponsored events, the two leaving the group does not change much.
The majority of lobbying concerning sports betting and online casino is handled by the Sports Betting Alliance, which includes DraftKings and FanDuel along with three AGA members in bet365, BetMGM through MGM Resorts, and Fanatics.
Considering the two brands combine for 71% of sports betting revenue share and 45% of online casino revenue share in reporting states through September, DraftKings and FanDuel remain crucial voices in the industry when it comes to new legislation and current regulation.
DraftKings, FanDuel on the exit
FanDuel recognized its misalignment with the AGA as it sets off to launch FanDuel Predict in December. The product will bring sports predictions to states without legal online sports betting.
“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 recognize 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. FanDuel has always been the company that moves quickly, from daily fantasy to mobile sports betting to prediction markets. We build what consumers want and we operate with an unwavering commitment to integrity.”
DraftKings, which plans to launch its predictions product by the end of the year, struck a similar note.
“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 have decided to relinquish its membership,” a DraftKings spokesperson said.
