The two largest sports betting operators in the U.S., FanDuel and DraftKings, agreed Wednesday to not seek licensing in Nevada in order to focus efforts on launching prediction markets in other states.

Regulators say prediction markets are “incompatible” with Nevada’s gaming regime. 

In a stipulated order with the Gaming Control Board, the companies agreed to voluntarily surrender any approvals previously reached with gaming regulators and withdraw any current pending applications. 

“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,” Control Board Chairman Mike Dreitzer wrote in the order.

Neither FanDuel or DraftKings operates their flagship sportsbooks or daily fantasy sports offerings in Nevada, which has maintained an in-person registration requirement for sports betting unlike many other states that have legalized the activity.

FanDuel was licensed in Nevada as a partner with Boyd Gaming in 2023 when the company rebranded its sportsbook at the Fremont Hotel and Casino as a FanDuel location, although Boyd managed the operation.

In July, Boyd Gaming sold its 5 percent stake in FanDuel back to the company for $1.76 billion. The company is also severing its ties with FanDuel at 15 of Boyd’s regional casinos in eight states.

“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,” FanDuel spokesman Alex Pitcocchelli said in a statement. “As a result, we are making the difficult decision to voluntarily surrender our license.”

Prediction markets — which are regulated federally by a commodity-focused regulatory panel — reach into all 50 states, including those that do not offer legal sports betting, such as California and Texas. FanDuel and DraftKings are expected to target the states without sports betting with their own version of a prediction market.

Nevada is one of nearly two dozen states and tribal gaming authorities that have filed federal lawsuits seeking to block Kalshi and other prediction markets from offering sports wagering contracts (the term companies use to describe the business) in their jurisdictions. 

Multiple cases are winding their way through the federal judicial process, with experts predicting that a legal remedy might not be in place until sometime in 2026.

“As part of our ongoing commitment to regulatory compliance, we have withdrawn our inactive application in Nevada,” Jen Aguiar, DraftKings’ chief compliance officer, said in an emailed statement. “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.”

FanDuel owner Flutter Entertainment announced in August it would partner with the Chicago Mercantile Exchange to potentially create an event contracts platform in the U.S. CEO Peter Jackson said at the recent Global Gaming Expo in Las Vegas that the company is “very well-placed irrespective of which path we end up following.”

Meanwhile, DraftKings applied to join the National Futures Association in August, a move considered an early step toward entering the prediction markets. CEO Jason Robins said companies such as Kalshi have flourished because bigger states such as Texas and California have not legalized sports betting.

In October, DraftKings announced it was acquiring predictions platform Railbird as it prepares to launch a mobile platform in the coming months to be called DraftKings Predictions.

DraftKings has more than 1,000 employees in Southern Nevada through its local headquarters at the Uncommons mixed-use business complex in southwest Las Vegas. The office is staffed with customer service workers, the trading (oddsmaking) team, business development officials and a legal department. 

A spokesperson for DraftKings said the agreement won’t affect the company’s offices. 

Updated at 2:43 p.m. on 11/12/2025 with a comment from DraftKings.

Updated at 2:29 p.m. on 11/12/2025 with a comment from FanDuel.