DraftKings Launches New Prediction Markets Platform Across 38 U.S. States

In a significant development for the gaming industry, DraftKings has unveiled its new prediction markets platform, 'DraftKings Predictions,' now operational in 38 states across the United States. This innovative offering, accessible as both a standalone mobile application and a web-based product, enables eligible customers to engage in the trading of event contracts tied to real-world occurrences.

The company confirmed that the 'DraftKings Predictions' platform is fully licensed by the U.S. Commodity Futures Trading Commission (CFTC), ensuring a regulated environment for its operations. Initially, the platform will feature markets across sports and finance categories, with DraftKings indicating plans to broaden its scope to include entertainment and culture sectors as the product evolves.

While the platform is available in a broad range of jurisdictions, DraftKings has clarified that event contracts specifically related to sports will not be universally offered across all 38 states. The company has explicitly identified Georgia, Texas, California, and Florida as states where these particular sports-based contracts will be accessible.

DraftKings' entry into this space occurs amidst a burgeoning interest in prediction markets, with several key players already established. Competitors such as Coinbase, Kalshi, Robinhood, and Polymarket are actively expanding their footprints. Moreover, traditional sports betting rivals, including Fanatics Betting and Gaming, FanDuel, and Underdog, have also launched their own prediction market initiatives, highlighting a broader trend within the digital wagering landscape.

This strategic pivot has not been without its repercussions for industry alliances. DraftKings, alongside Fanatics and FanDuel, previously withdrew from the American Gaming Association (AGA) over differing viewpoints regarding the nature and regulation of prediction markets. Concurrently, companies like Coinbase and Kalshi are engaged in legal battles against state attempts to restrict sports event contracts, asserting that these instruments should fall under CFTC jurisdiction rather than state gaming laws.

To enhance its market offerings, DraftKings intends to establish connectivity with multiple external exchanges, including the CME Group, providing users with an expanded selection of trading options, such as economic indicators and global benchmarks. This expansion strategy also leverages the prior acquisition of Railbird Technologies, with its wholly-owned subsidiary, Railbird Exchange, LLC, poised for integration into future market launches.

Demonstrating its commitment to player welfare, DraftKings has pledged to incorporate its robust Responsible Gaming best practices into the event contracts platform. This commitment aims to ensure that consumers possess a comprehensive understanding of how these products function and can engage with them in a responsible and sustainable manner.