DraftKings and FanDuel exit AGA and Nevada to advance CFTC-regulated prediction platforms
Summary
DraftKings and FanDuel have voluntarily surrendered their Nevada licences and withdrawn from the American Gaming Association as they prepare to launch prediction-market platforms regulated by the US Commodity Futures Trading Commission (CFTC). Nevada regulators told the companies their planned prediction-market operations conflict with state policies for licensed sports-wagering operators. The Nevada Gaming Control Board accepted Flutter/FanDuel’s surrender and allowed DraftKings to withdraw pending applications.
FanDuel plans to launch FanDuel Predicts in December via a joint venture with CME Group. DraftKings is rolling out DraftKings Predictions after acquiring Railbird, a CFTC-approved platform. Both firms say they will not operate prediction markets within legal sports-betting jurisdictions and will geofence tribal territories. Other operators such as PrizePicks and Underdog are also moving into prediction markets.
Key Points
- Both firms surrendered Nevada licences and left the AGA to pursue CFTC-regulated prediction markets.
- Nevada regulators found the companies’ planned prediction operations incompatible with state gaming policies.
- FanDuel Predicts will launch with CME Group; DraftKings launches DraftKings Predictions after acquiring Railbird.
- Both companies will geofence out regulated sports-betting jurisdictions and tribal territories.
- The move underlines a growing industry shift toward federally regulated prediction markets, with other entrants like PrizePicks and Underdog.
- DraftKings and FanDuel expect to remain active in wider sports-betting advocacy through groups like the Sports Betting Alliance.
Context and Relevance
This is a significant regulatory and strategic pivot: two leading US sportsbooks are abandoning a state-aligned stance to pursue federal oversight. That divergence highlights friction between state gaming authorities (notably Nevada) and the CFTC over what constitutes permissible event contracts. The decision could reshape competitive dynamics, tribal-state relations, lobbying efforts and how regulators define and police betting-like products.
Why should I read this?
Short version: the biggest US players are changing the rules of the game. If you follow sports betting, regulation or market strategy, this matters — fast. We read the detail so you don’t have to.
Author note
Punchy take: This isn’t a minor tweak — it’s a strategic break. Expect legal sparring, new product launches and fresh regulatory front lines. Read the full moves if you work in gaming, compliance or sports-betting strategy.