DraftKings Launches Prediction Markets App in 38 States

DraftKings launched DraftKings Predictions at this time, bringing their sports activities occasion contracts to 38 states.

The standalone cellular app operates beneath Commodity Futures Trading Commission oversight by way of DraftKings’ wholly owned subsidiary, registered as a CFTC Introducing Broker and National Futures Association member. The platform launches initially with sports activities and finance contracts by way of CME Group’s alternate, with plans to broaden into leisure/tradition markets and extra.

“DraftKings Predictions is a major milestone and displays our ongoing dedication to delivering merchandise that faucet into the fervour of our prospects,” stated Jason Robins, DraftKings CEO and co-founder, in the company’s announcement.

The DraftKings Predictions app might be obtainable in 38 states—considerably broader than the 30 states the place DraftKings Sportsbook presently operates. Notably, the growth consists of sports activities occasion contracts in California, Florida, Georgia, and Texas, states that lack authorized sports activities betting.

Navigating regulatory uncertainty

During DraftKings’ Q4 2024 earnings call in February, Robins acknowledged the nascent nature of prediction markets. “It’s early. We are watching it very actively. It’s definitely one thing that now we have eager curiosity in seeing the way it performs out,” he stated when requested concerning the firm’s stance on occasion contracts.

In a November interview, Robins elaborated on the regulatory uncertainty: “‘I don’t know’ is the simple reply to that. I don’t understand how long-term it’s going to be. It’s anybody’s guess. It’s so new, and proper now there are courtroom circumstances and different issues enjoying out… We have to ensure we don’t miss the boat and that we capitalize if the chance is there.”

The firm has navigated state regulatory issues by way of transparency. “We have actually sturdy relationships with regulators, and we’ve been clear. For instance, once we had been buying Railbird, we didn’t watch for them to examine it; we advised everybody instantly,” Robins advised reporters. “Most of those states haven’t stated, ‘You can’t do it anyplace.’ They’ve stated, ‘We don’t need you partnering with somebody who’s doing it illegally in our state.’”

Jordan Bender of Citizens famous the acquisition of Railbird “will assist DraftKings fend off opponents and doubtlessly double its market measurement by working in states like California and Texas, the place conventional sports activities betting is prohibited.”

CME partnership creates shared liquidity with FanDuel

Despite acquiring Railbird Exchange in October, DraftKings launched on CME Group’s infrastructure somewhat than its personal alternate. Both DraftKings and FanDuel use CME’s alternate, which means customers of competing platforms will fill one another’s orders at equivalent costs.

“We will create an unparalleled buyer expertise, leveraging key strategic relationships like ESPN and NBCUniversal to supply an genuine, real-time product that strikes on the velocity of sports activities,” stated Corey Gottlieb, DraftKings’ chief product officer.

DraftKings Predictions plans to connect with a number of exchanges, starting with CME Group at launch, to present prospects the best potential depth and breadth of markets. The firm plans to combine Railbird (*38*), LLC post-launch, which can broaden obtainable markets, allow product innovation, and ship advantaged economics over time.

This setup presently removes pricing differentiation and forces competitors on person expertise, velocity, and interface design.

Non-sports classes driving market development

While sports activities accounts for about 85% of Kalshi’s notional quantity, a new report from Keyrock and Dune exhibits non-sports classes are driving combination development throughout prediction markets. Economics grew 905% to $112 million in mixed month-to-month notional volumes from January 2024 to November 2025, whereas Tech & Science classes rose 1,637% to $123 million.

Politics stays the most important prediction market class at $1.2 billion in notional quantity year-to-date. On Polymarket, politics outpaced sports activities by 400% in open curiosity throughout 2025. “On any given day, extra resting capital sits in main classes exterior of sports activities,” the report famous, suggesting prediction markets differ basically from sportsbook fashions.

The report monitored Polymarket’s 95 million whole trades and Kalshi’s 74 million trades over the interval. Polymarket confirmed extra balanced distribution with sports activities (39%), politics (34%), and crypto (18%) collectively driving over 90% of its notional quantity exercise. Polymarket not too long ago re-launched in the US after having to exit that market in January 2022.

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