DraftKings is pushing beyond its traditional sports betting roots by entering the rapidly developing prediction markets sector.
The expansion signals a strategic effort to position the company at the center of regulated event-based trading in the United States.
On Friday, the company announced the launch of the DraftKings Predictions app, which allows users to trade contracts linked to sports and financial outcomes.
At launch, the app is available across 38 states, with sports-related contract trading permitted in 17 of those jurisdictions.
DraftKings has indicated that this initial rollout is only the beginning of a broader product strategy.
According to the company, future offerings are expected to extend beyond sports and finance into areas such as cryptocurrency-linked contracts, entertainment outcomes, and cultural events.
Regulated Infrastructure Underpins Expansion Strategy
Unlike many crypto-native prediction platforms, DraftKings is building its prediction market business on regulated derivatives infrastructure.
The company confirmed that all trading on the Predictions app will be conducted through Railbird Exchange.
Railbird is a derivatives venue acquired by DraftKings and is registered with the US Commodity Futures Trading Commission.
This registration allows DraftKings to offer event-based contracts within an established regulatory framework similar to traditional futures markets.
By anchoring its platform in regulated infrastructure, DraftKings is aiming to appeal to a broader audience that may be hesitant to engage with decentralized or offshore platforms.
The move also positions the company to adapt quickly as US regulators clarify rules around event-based trading and prediction markets.
Mainstream Visibility for a Growing Sector
As a publicly traded US sports betting and entertainment company, DraftKings brings significant mainstream visibility to prediction markets.
Its national footprint could accelerate public awareness and acceptance of event-based trading products.
This increased exposure may also pave the way for regulated crypto-linked contracts as prediction markets gain traction with regulators and institutional participants.
The company’s financial performance provides context for its expansion ambitions.
In early November, DraftKings reported third-quarter revenue of $1.14 billion, reflecting a 4% increase year over year.
The company also posted an adjusted loss of $127 million during the same period.
DraftKings said it expects to generate as much as $6.1 billion in revenue this year, nearly triple what it reported in 2022.
From Crypto-Native Platforms to Wall Street Players
While DraftKings’ platform does not rely on blockchain technology, the prediction markets sector has largely been shaped by crypto-native innovation.
Platforms such as Polymarket helped redefine how prediction markets function by using crypto rails for global participation and near-instant settlement.
These platforms gained significant traction during major political and macroeconomic events.
Interest surged during the 2024 US presidential election, when prediction markets became a focal point for real-time sentiment tracking.
Regulated competitors have also emerged alongside crypto-native platforms.
Kalshi, a US-regulated prediction market operating under the CFTC, has expanded interest in event-based contracts within a compliant structure.
Meanwhile, crypto-focused infrastructure providers are moving deeper into the space.
Bitnomial Clearinghouse has signaled plans to support prediction markets tied to cryptocurrency and macroeconomic outcomes.
Large exchanges are also adapting.
Coinbase has outlined plans to integrate prediction markets into its broader vision of becoming an “everything app.”
Gemini has already launched prediction markets in the US after securing regulatory approval.
Together, these developments suggest prediction markets are moving from niche crypto experiments toward mainstream financial products.
