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Sports betting power houses DraftKings and Fanduel have split with the Las Vegas lobbying group, the American Gaming Association, in a quest to embrace prediction markets. The AGA has taken a firm stance against prediction markets.
Both companies informed the Nevada Gaming Control Board (NGCB) last week they would be abandoning efforts to obtain a sports betting license in the Silver State.
The NGCB has been in a legal battle with the prediction market Kalshi and has previously warned licensees about potential disciplinary measures related to offering sports event contracts.
US District Court of Nevada Judge Andrew Gordon said last Friday he is leaning toward dissolving an injunction involving Kalshi.
The judge questioned whether some of Kalshi’s sports-related contracts meet the legal standards for derivatives, noting, “It seems like your definition is so broad that pretty much anything can become a swap — anything can have a financial consequence.”
He added, “Nobody thought sports bets were commodities or excluded commodities or swaps until some brilliant people at Kalshi.”
AGA opposes prediction markets https://t.co/pENnJy8FAX
— gambling911 (@gambling911) November 19, 2025
In regard to FanDuel and DraftKings decision, the NGBC released a statement: "It has been made clear to the Board that 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."
The statement continued: "The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. As a reminder to our licensees and to provide guidance and clarity on the Board's position with regard to the matter of sports event contracts and prediction markets, the Board offers the following: Notice # 2025-90 Flutter Entertainment, FanDuel Sportsbooks, and DraftKings."
Flutter has made it no secret that the company looks to pursue options in the prediction market sector.
During Flutter’s third quarter earnings call Wednesday, CEO Peter Jackson said FanDuel Predicts will launch sometime in December. The company has already partnered with CME Group for a prediction markets product.
“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,” a FanDuel spokesperson told CNBC this week.
The only sportsbooks licensed in Nevada are BetMGM, BettingUSA, Caesars, WynnBET, Circa Sports, SuperBook and STN Sports. William Hill offers a mobile website as well. The state does not permit mobile registrations. Instead, prospective customers must join at a land-based casino.
- Chris Costigan, Gambling911.com Publisher
