DraftKings Launches Federally Regulated Prediction Platform

DraftKings Inc., a leading U.S. sports betting and fantasy sports operator, has launched DraftKings Predictions, a federally regulated platform that allows users to trade on the outcomes of real-world events. The move expands DraftKings’ presence beyond traditional sports betting and daily fantasy offerings, marking its entry into the growing U.S. prediction market.

The platform is regulated by the Commodity Futures Trading Commission (CFTC) and operates through a wholly owned subsidiary registered as an introducing broker and member of the National Futures Association, distinguishing it from state-regulated sports betting products. At launch, DraftKings Predictions is available in 38 U.S. states and accessible via a standalone mobile app and web platform.

• Federally Regulated Platform: DraftKings Predictions operates under the Commodity Futures Trading Commission (CFTC) and the National Futures Association, distinguishing it from state-regulated sports betting.

• Expanded Market Offerings: The platform allows users to trade on sports, financial, and future event contracts, with plans to add entertainment and cultural markets.

• Responsible Trading and Customer Safeguards: DraftKings introduces a Responsible Trading program, including deposit limits, cooling-off periods, and educational resources to promote safe participation.

Product Features and Market Availability

DraftKings Predictions enables eligible users to trade contracts tied to sports and financial events, with plans to expand into entertainment, cultural, and other categories over time. Users can place trades on global benchmarks, major economic indicators, and sports-related outcomes through a dedicated, streamlined interface that operates separately from DraftKings’ casino, sportsbook, and daily fantasy platforms.

The platform leverages DraftKings’ existing technology infrastructure, including analytics tools and customer experience features, while integrating Railbird Technologies Inc., recently acquired by DraftKings. The rollout includes the Railbird Exchange LLC, which aims to broaden market offerings and support long-term growth. Initial event contracts will be offered in major U.S. states such as California, Florida, Georgia, and Texas, expanding DraftKings’ reach in high-population markets. CME Group serves as the platform’s first exchange partner, with additional partnerships expected as the service grows.

Strategy and Competitive Positioning

DraftKings sees the prediction market as a strategic opportunity to diversify its product portfolio and strengthen customer engagement. Corey Gottlieb, Chief Product Officer, described the launch as a “significant milestone,” emphasizing the company’s commitment to innovation, compliance, and alignment with customer interests.

Gottlieb highlighted DraftKings’ media partnerships, including collaborations with ESPN and NBCUniversal, as key advantages. These relationships are expected to enhance real-time market access and marketing reach, providing a competitive edge in prediction markets.

Responsible participation is a central component of DraftKings Predictions. The platform introduces a Responsible Trading program to educate users and promote informed trading decisions. Customers can set deposit limits, implement cooling-off periods, or self-exclude from trading. Educational resources are available through the DraftKings Responsible Trading Center, accessible via the app and online. To encourage adoption, DraftKings is offering promotional incentives at launch. Users can enter for a chance to win $1 million through multiple participation methods. In states offering sports event contracts, new users may receive a $25 trade bonus on their first eligible trade. These incentives are intended to attract early users and boost platform engagement.

DraftKings Predictions represents a significant milestone for our company, combining innovation, compliance, and customer-focused design to expand our presence beyond traditional sports betting and daily fantasy sports.

Availability and Rollout

DraftKings Predictions is now available to eligible U.S. residents in accordance with state-specific rules governing event contracts. The platform is rolling out on major app stores for iOS and Android, with web access available at predictions.draftkings.com. Users can verify eligibility and availability through the app or the website.

With its entry into federally regulated prediction markets, DraftKings is expanding beyond its traditional betting and fantasy sports base, signaling a growing focus on diversified gaming products and nationwide market reach.