DraftKings is one step closer to being able to launch its DraftKings Predictions product in the U.S. after receiving key federal approvals.
DraftKings Predictions, officially under the business name of Gus III LLC, received the green light from both the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) to operate as an introducing broker (IB). The entity is listed as an approved NFA member and an approved swap firm as of Dec. 4.
“This registration marks an important step in the company’s federally regulated operations and supports the upcoming launch of DraftKings Predictions,” a DraftKings spokesperson told SBC Americas on Friday. “We appreciate the NFA’s diligence in the process and remain committed to operating responsibly, transparently, and in full compliance with federal regulation.”
What is an Introducing Broker?
An IB is one of several entities within the financial derivatives matrix. It is not a designated contract market (DCM) like Kalshi or a futures commission merchant (FCM) like PrizePicks or Robinhood, but is a firm that can accept orders while not being authorized to actually handle customer funds. As its name suggests, it is more like a concierge service than an actual contract marketplace.
IB status effectively allows the registered entity to act as the front end for a DCM. DraftKings already has an in-house DCM, having acquired CFTC-licensed Railbird in October. Railbird was approved as a DCM shortly before that deal but is not currently in the market.
One thing DraftKings Predictions’ IB and swap firm status would allow it to do is to offer event contracts via exchanges other than Railbird, something that DraftKings suggested it would pursue in its prediction market launch announcement.
Another step on the road
DraftKings originally filed with the NFA as Gus II Holdings LLC in June 2024. That listing subsequently disappeared and was replaced by the Gus III listing in June 2025, before DraftKings CEO Jason Robins announced the company’s intent to enter into prediction markets in October. DraftKings subsequently confirmed in November that it would offer sports event contracts in non-sports betting states
DraftKings is one of several gaming operators now federally approved to offer prediction markets.
PrizePicks gained NFA approval as an FCM in September and was the first to launch as one last month. FanDuel is partnered with CME Group, which is an approved DCM and FCM, and has plans to launch early next year.
Fanatics gained IB status by acquiring Paragon Global Markets and debuted its standalone prediction markets app this week. Underdog also offers sports event contracts, although it does so as a technology partner of DCM and FCM Crypto.com.
No set launch date for DK Predictions yet
The timeline for DraftKings actually launching its predictions platform is still unconfirmed beyond the company’s statement that sports contracts would arrive “in the coming months.” A company spokesperson declined to offer an updated timeline post-approval.
While it waits to launch, DraftKings has made several moves that are a reflection of its status as a prediction market participant. It has walked away from the American Gaming Association and launched Spanish-language functionality that is in part targeted at non-sports betting states like California and Texas.
