DraftKings is officially making its entry into the prediction market space with the launch of a standalone app.
On Friday, DraftKings launched of DraftKings Predictions, an online prediction market platform that allows users to trade on markets including finance, entertainment and controversial sports event contracts. DraftKings Predictions initially launched in 38 states and established a presence in several key markets that have yet to authorize online sports betting. The markets include California, Georgia and Texas. In total, DraftKings Predictions debuted in 17 states where sports betting isn’t authorized.
In many states, DraftKings Predictions is offering a wide range of both financial and sports markets. In many states with sports betting, the app is live without sports markets but other markets on culture and politics are available. In Connecticut only financial markets are available.
The states where DraftKings is not offering event contracts in any capacity include:
- Arizona
- Arkansas
- Iowa
- Illinois
- Maine
- Montana
- Ohio
- Pennsylvania
- Tennessee
- Nevada
- New Hampshire
- Washington
DraftKings to offer markets powered by CME Group
DraftKings launched its online prediction market platform by leveraging a partnership with CME Group, a financial services company that landed a deal in August with FanDuel to also allow the Flutter-owned brand to launch a prediction market app of its own. CME Group is providing DraftKings Predictions with trading markets, with plans to diversify its offerings behind the acquisition of derivatives exchange Railbird Technologies.
Many in the industry assumed DraftKings would power its own contracts after the Railbird acquisition, but the launch does not involve the exchange just yet.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said DraftKings Chief Product Officer Corey Gottlieb.
DraftKings’ pathway to offering event contracts
DraftKings first teased an entry into the prediction market space in 2024 by filing an application with the National Futures Association (NFA). DraftKings would pull the application nearly a year later before a second filing was submitted in August 2025.
Earlier this month, the NFA and the CFTC awarded DraftKings approval as an NFA member and approval to operate as an introducing broker (IB) and swap firm. DraftKings being approved as an IB allows the company to accept orders while not being authorized to actually handle customer funds. The approvals also allow DraftKings Predictions to act as a front end for a DCM and to offer event contracts via third-party exchanges.
DraftKings’ entry into the prediction market space also led to its resignation from the American Gaming Association (AGA). DraftKings, along with FanDuel, parted ways with the association over its stance regarding sports event contracts. The AGA has published surveys that label sports event contracts as gambling and has also voiced concerns to major sports leagues about forging partnerships with prediction market platforms.
Growth plans for DraftKings Predictions
DraftKings plans to leverage its partnerships with ESPN and NBCUniversal to expand the reach of its prediction market platform. In September, DraftKings landed an advertising deal with NBCUniversal that includes digital integrations and sponsorships. Two months later, DraftKings partnered with ESPN after cutting ties with PENN Entertainment.
“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,” continued Gottlieb. “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 is implementing its Responsible Trading program to ensure its prediction market platform practices responsible gaming standards while providing users with educational resources. DraftKings Predictions is also providing users with RG tools, including deposit limits, self-exclusion capability and educational resources.
