FanDuel and DraftKings have officially announced their decision to part ways with the American Gaming Association (AGA) as they shift their focus towards launching prediction markets, as confirmed by The Closing Line on Monday evening.

The leading sports betting operators in the U.S. indicated their intention to introduce sports prediction markets in their Q3 earnings reports, signaling a divergence from the current priorities of the AGA. A representative from FanDuel shared the following statement with The Closing Line: “FanDuel has built our success on strong partnerships within the industry.

We deeply value the collaborative spirit that these relationships foster. However, as we venture into prediction markets, we acknowledge that this new direction does not align with the American Gaming Association’s present objectives for its members. After careful consideration, we have chosen to discontinue our AGA membership at this time.

FanDuel’s approach has always been to respond swiftly to market demands, from daily fantasy sports to mobile betting and now, to prediction markets. We prioritize what consumers need and uphold a steadfast commitment to integrity.”

Similarly, a spokesperson from DraftKings remarked: “As our business strategy evolves, particularly in the realm of prediction markets, DraftKings has recognized that our plans no longer fully align with the AGA’s direction in certain respects, prompting our decision to forgo our membership.” In response to the departures, an AGA spokesperson issued a statement:

“We have accepted the requests from DraftKings and FanDuel to relinquish their memberships, effective immediately. We wish them well and anticipate maintaining strong relationships as we continue our mission to promote and safeguard legal, regulated gaming.”