DraftKings and FanDuel have taken steps to comply with regulations by giving up their Nevada licenses and leaving the American Gaming Association (AGA). This move comes as both companies prepare to launch prediction market platforms regulated by the CFTC, which do not align with Nevada’s rules on sports event contracts. Nevada regulators said the companies’
DraftKings and FanDuel have taken steps to comply with regulations by giving up their Nevada licenses and leaving the American Gaming Association (AGA).
This move comes as both companies prepare to launch prediction market platforms regulated by the CFTC, which do not align with Nevada’s rules on sports event contracts.
Nevada regulators said the companies’ planned prediction market activities conflict with the state’s policies for licensed operators. The Nevada Gaming Control Board approved Flutter Entertainment’s surrender of its Order of Registration and all related approvals, including those linked to FanDuel Sportsbook. The Board also granted DraftKings permission to withdraw all pending applications related to its sports wagering operations in Nevada.
The Board said in a statement:
“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. This conduct is incompatible with their ability to participate in Nevada’s gaming industry.”
Both companies are preparing to launch new platforms regulated at the federal level. FanDuel Predicts is scheduled to launch in December through a joint venture with CME Group. DraftKings is developing DraftKings Predictions after acquiring Railbird, a CFTC-approved platform, with plans to roll it out in the coming months.
FanDuel spokesperson Alex Pitcocchelli shared:
“Our views of the current opportunity for prediction markets outside of regulated states are unfortunately in direct opposition to Nevada’s priorities for its licensed operators. As a result, we are making the difficult decision to voluntarily surrender our license.”
DraftKings and FanDuel have confirmed they will not offer prediction markets in states where sports betting is fully legal and will geofence tribal lands to restrict access.
Jen Aguiar, DraftKings’ chief compliance officer, said:
“As part of our ongoing commitment to regulatory compliance, we have withdrawn our inactive application in Nevada. Prediction markets are federally regulated by the Commodity Futures Trading Commission, and we remain dedicated to working collaboratively with regulators to uphold the highest standards of integrity in our operations.”
The companies’ license withdrawals happened alongside their decision to leave the AGA. Following meetings at the AGA’s Public Policy Committee session in Washington, D.C., DraftKings and FanDuel informed the association that they would surrender their memberships, which the AGA confirmed.
An AGA spokesperson 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.”
Other gaming operators, such as PrizePicks and Underdog, are also entering the prediction market space, while traditional casino companies have stayed out. DraftKings and FanDuel are expected to remain active in promoting sports betting legalization through the Sports Betting Alliance, alongside BetMGM, bet365, and Fanatics Sportsbook.