As Bloomberg reported, the company announced Friday that it has launched the DraftKings Predictions app, which allows users to trade contracts on sports and financial results. At launch, the app will be available in 38 states, of which sports-related commerce is permitted in 17 states.
DraftKings eventually plans to expand its prediction market offering beyond sports and finance to also include contracts related to crypto, entertainment and cultural events, according to Bloomberg.
DraftKings’ push into the prediction markets is supported by a regulated derivatives infrastructure tied to CME Group-style market standards.
The company said trading will take place through Railbird Exchange, a derivatives platform it acquired that is registered with the U.S. Commodity Futures Trading Commission, allowing DraftKings to offer event-based contracts within an established regulatory framework.
As a publicly traded, US-based sports betting and entertainment company, DraftKings provides greater visibility and mainstream exposure to prediction markets and potentially crypto-linked contracts as regulated event trading gains popularity in the United States.
Early November, DraftKings reported Q3 revenue of $1.14 billion, up 4% year over year, along with an adjusted loss of $127 million. The company said it expects up to $6.1 billion in revenue this year, about three times more than in 2022.
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From Polymarket to Wall Street: prediction markets are going mainstream
While DraftKings’ prediction market offering is not based on blockchain or decentralized technology, the broader industry has gained momentum in recent years, thanks in large part to crypto-native platforms that have redefined how prediction markets work.
The most prominent example is Polymarket, which brought prediction markets onto the chain by using crypto rails to enable global participation and near-instant settlement.
The platform helped popularize prediction markets among crypto-native users, especially during major political events and especially the 2024 US presidential election. Its rise coincided with growing interest in other event-based trading platforms, including Kalshi, a US-regulated prediction market operating under the Commodity Futures Trading Commission (CFTC).
In addition to consumer-facing platforms, crypto-focused financial infrastructure providers are also expanding into this space. Bitnomial Clearinghouse, a derivatives clearing organization regulated by the CFTC, has signaled plans to support prediction markets related to cryptocurrency and macroeconomic outcomes.
Crypto-native exchanges are also expanding their product suites with prediction-style offerings. Coinbase recently announced plans to integrate stock trading and prediction markets into its long-term vision of becoming an “everything app.”
Meanwhile, Winklevoss-led Gemini cryptocurrency exchange has launched prediction markets in the US after receiving the necessary regulatory approvals.
Related: Phantom uses Kalshi to offer regulated wallet-based prediction markets
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