DraftKings has announced its formal entry into the prediction markets space with the launch of its new app, DraftKings Predictions.
Users will initially only be able to trade on sports and finance outcomes, with additional categories such as entertainment and culture to be added at a later date.
Event contracts will be available in 38 US states, with sports contracts accessible in 17 states including California, Florida, Georgia and Texas.
Crucially, California, Texas, and Georgia do not have forms of legalised sports betting. Florida operates under a monopoly model via Hard Rock Bet.
The operator said it planned to connect the app to multiple exchanges, starting with CME Group and later including the recently acquired Railbird Technologies.
As part of the launch, DraftKings Predictions has become a Commodity Futures Trading Commission (CFTC)-registered introducing broker and member of the National Futures Association.
The CTFC is the government agency that regulates the US derivatives markets.
“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.”
DraftKings acquired Railbird in October with the explicit goal of expanding into prediction markets, although at the time it was unclear whether sports event contracts would be included in the product due to perceived regulatory risks.
FanDuel also launched a prediction market product recently with CME Group as its exchange partner.
The entry of the two sportsbook giants into the prediction market space saw the pair withdraw from the American Gaming Association.
Coinbase has also partnered with Kalshi to roll out access to prediction markets on its platform in the US.
Kalshi and Polymarket were both recently valued at $11bn and $8bn respectively as part of a funding round and investment deal.
The post DraftKings launches prediction markets app first appeared on EGR Intel.
DraftKings Predictions now available across 38 states following launch with CME Group, with sport trading offered in 17 jurisdictions
The post DraftKings launches prediction markets app first appeared on EGR Intel.