DraftKings jumps into prediction markets with a new standalone app
DraftKings announced its formal entry into the prediction markets business with the launch of DraftKings Predictions, a new platform that will operate under the supervision of the Commodity Futures Trading Commission (CFTC) of the United States. The product is presented as an independent app, available both in mobile and web versions, marking a strategic expansion of the company’s ecosystem beyond traditional sports betting.
In its initial stage, the platform will allow eligible users to trade contracts linked to the outcomes of real events, with a primary focus on sports and financial events. According to the company, in later phases, markets related to entertainment and culture will also be incorporated.
DraftKings highlighted that the new product will leverage the existing technological, commercial, and analytical infrastructure, as well as strategic agreements with major media groups. “Our ambition is to offer an authentic, real-time experience aligned with the pace of sports, relying on key partnerships and our proprietary technology,” said Corey Gottlieb, the company’s Chief Product Officer.
Launch in 38 states and connection with regulated markets
DraftKings Predictions will begin operations in 38 states, where users will be able to access event contracts under a federal regulatory framework. The rollout will be managed through a group subsidiary duly registered with the CFTC and the National Futures Association (NFA).
Contracts linked to sporting events will be available even in major markets such as California, Florida, Georgia, and Texas, significantly expanding the platform’s potential reach. Additionally, the system will connect directly with multiple exchanges, starting with CME Group.
The expansion roadmap also includes the integration of Railbird Technologies and its exchange subsidiary, a company DraftKings acquired in October of this year, thereby strengthening its technological positioning in this new segment.
Focus on user protection and responsible gaming
The growth of prediction markets has not been without controversy in the United States. Various state regulators have historically questioned whether contracts on sporting events constitute a covert form of unlicensed gambling. Added to this are concerns about the lack of user protection mechanisms compared to regulated sportsbooks.
In response to this scenario, DraftKings launched the Responsible Trading program, an initiative that transfers its responsible gaming policies to the environment of federally regulated event contracts. The program includes control tools for users, such as deposit limits, cooling-off periods, self-exclusion options, and educational resources.
The Responsible Trading Center, integrated within the app and web version, also offers explanatory content so users can understand how contracts work before participating, reinforcing the informative and preventive component.
DraftKings Predictions is already available to eligible users in the United States and will continue expanding its presence as the launch process progresses in major app stores.
Tags: United States, USA, DraftKings, DraftKings Predictions, DrafKings Predictive Markets