Lou Jacobs will take up his newly-elected position as Chairman of the American Gaming Association (AGA) in January 2026 but will inherit a national trade group that has just lost two of its most powerful members.
In the latest drama fuelled by sports prediction markets, both Flutter-owned FanDuel and DraftKings have quit the AGA as they have now aligned themselves with the controversial exchange-trading system.
What Is The Row Over Sports Prediction Markets?
The AGA’s collective industry voice was previously united in its opposition to the concept of federally legislated sports prediction markets, in line with state regulators and tribal groups, stating that it is gambling not simply a financial exchange.
The year has been punctuated with various state regulators tackling federally approved prediction market platform Kalshi through the courts, but mostly they have not landed a glove on the company founded in 2021 by Tarek Mansour and Luana Lopes.
In fact it has been a stellar year for Kalshi, with its sports prediction markets trading at over $2 billion for the first half of 2025 alone, emphasising the growing popularity of the genre.
Long-term rival Polymarket has flourished too while operating offshore under founder and CEO Shayne Coplan.
Following news in September that it had been given the legal green light to trade in the US again, Polymarket has made giant strides with a Beta launch plus UFC and Yahoo deals among its big plays.
Why Have DraftKings And FanDuel Quit The AGA?
While most sports betting operators had been happy to sit on the sidelines to see how events play out, both FanDuel and DraftKings established partnerships that would allow them to move swiftly into the emerging marketplace.
The first straw in the wind came in August when CME Group and FanDuel announced a partnership to develop an innovative event contracts platform.
That was followed in October by DraftKings acquiring federally licensed predictions platform Railbird.
The big reveals came this month as the major players in the gambling industry reported their trading figures for the third quarter of this year.
In DraftKings’ Q3 2025 call, founder Jason Robins confirmed the up-coming launch of sports prediction markets, under the banner of DraftKings Predictions.
At the same time, Flutter revealed it was preparing to launch FanDuel Predicts in the US before the end of this year, offering sports prediction markets in states where sports betting is not yet legalised.
Just last week both companies withdrew their gambling license applications in Nevada as the state regulators have made it clear that they consider sports prediction markets should be subject to state gambling laws.
In a notice to licensees, Nevada Gaming Control Board Chairman Mike Dreitzer went so far as to say: “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.”
Matters came to a head when the AGA intended to push through a resolution that would revoke membership of any operator who offered prediction markets.
That appears to have pushed both DraftKings and FanDuel to announce their departures soon after.
Reaction To The High-Profile Split
A spokesperson clarified FanDuel’s position in light of the impending debut of FanDuel Predicts.
“FanDuel has built our business by maintaining strong industry partnerships,” they said.
“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.”
DraftKings made a similar statement, confirming: “As the company’s business strategy evolves – including – 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.”
The AGA’s farewell message to both companies gave a gentle nod towards the legal minefield they have just entered, saying: “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 to our mission to promote and protect legal, regulated gaming.”
Jacobs Elected As AGA’s Next Chairman
While that very public falling out grabbed the headlines, it was announced on November 18 that Delaware North CEO Lou Jacobs was elected the American Gaming Association’s new chairman and will begin his two-year term from January 2026.
Jacobs will replace present incumbent Michael Rumbolz who is coming to the end of his two-year stint in office.
“It’s an honor to lead the AGA at such a dynamic time,” Jacobs said.
“I look forward to building on AGA’s success and working with CEO Bill Miller and the Board to ensure legal gaming remains a strong economic engine for communities across the country.”
Delaware North is a privately owned, globally operating hospitality and food service management company where Jacobs has been overseeing the firm’s subsidiaries.
“Lou’s tremendous experience across the gaming and hospitality ecosystem makes him an exceptional choice to be AGA’s next chairman,” said AGA President and CEO Bill Miller.
“His perspective as a long-time industry leader and active board member of the AGA will be instrumental as we continue to champion policies that strengthen and sustain our industry.”
