DraftKings launches CFTC-regulated prediction market platform across 38 states

DraftKings has entered the prediction market space with the launch of DraftKings Predictions, a new exchange offered through a standalone mobile app and a web-based desktop platform. The move extends the company’s activity into trading on real-world outcomes, with sports and finance available at launch and additional categories expected over time.

DraftKings Predictions operates under the regulatory oversight of the U.S. Commodity Futures Trading Commission. The platform is run by a wholly owned subsidiary that is registered as an Introducing Broker and a member of the National Futures Association. The company has positioned the new product alongside its existing Daily Fantasy Sports and sportsbook operations.

According to DraftKings, the platform is designed to integrate real-time data and content through strategic relationships with media partners, including ESPN and NBCUniversal. DraftKings also plans to expand market access through multiple exchanges, beginning with the CME Group. The rollout will incorporate the company’s acquisition of Railbird Technologies Inc. and its subsidiary, Railbird Exchange, LLC, with the stated aim of broadening available markets and enabling additional product development.

“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said Corey Gottlieb, Chief Product Officer of DraftKings. 

“We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports. Along with our operational footprint, marketing and analytics infrastructure, and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”

Availability of DraftKings Predictions is determined by a user’s state of residence rather than their physical location. The platform is accessible in 38 states, including sports event contracts in states such as California, Florida, Georgia, and Texas. Residents of states where DraftKings Predictions markets are not offered, including Pennsylvania, are not eligible to participate even if they travel to another state.

Initial offerings on the platform include contracts tied to sporting event outcomes. Professional sports contracts are available for the NFL, NBA, and NHL, while college contracts cover college football and basketball. In addition to sports, the platform offers trading opportunities related to cryptocurrency, economic indicators, commodities, and the stock market. DraftKings has indicated that entertainment and culture markets may be added in the future.

DraftKings has applied its existing responsible gaming framework to the new platform through a Responsible Trading program. The program is embedded within the DraftKings Predictions app and focuses on education and awareness around event contract trading. Users have access to tools such as deposit limits, cool-off periods, self-exclusion options, and educational materials through the DraftKings Responsible Trading Center.

The launch includes promotional incentives for early users. DraftKings is offering a chance to win a $1 million prize through DraftKings Predictions, and in states where sports event contracts are available, customers may receive up to a $25 trade bonus based on their first trade.

The entry into prediction markets has drawn opposition in California, where tribal gaming interests have historically asserted exclusive rights over gambling activities. Victor Rocha, Conference Chair of the Indian Gaming Association, said DraftKings and California are once again “at war.” Tribal representatives have previously pursued legal action against sportsbook operators and may take similar steps regarding DraftKings Predictions.