DraftKings has made its foray into the predictions market with the introduction of DraftKings Predictions, a newly launched platform available via a dedicated mobile application and a web-based desktop interface. This initiative broadens the company’s engagement in trading based on real-world outcomes, initially covering sports and finance, with plans for more categories to be added in the future.

DraftKings Predictions is governed by the oversight of the U.S. Commodity Futures Trading Commission. The exchange is managed by a fully owned subsidiary that operates as an Introducing Broker and holds membership in the National Futures Association. DraftKings has integrated this new offering alongside its existing Daily Fantasy Sports and sportsbook services.

As indicated by DraftKings, the platform aims to leverage real-time data and dynamic content through partnerships with leading media providers like ESPN and NBCUniversal. The company also intends to widen market accessibility by collaborating with various exchanges, starting with the CME Group. The launch plan includes the incorporation of Railbird Technologies Inc., acquired by DraftKings, and its subsidiary, Railbird Exchange, LLC, all aimed at enhancing market offerings and facilitating further product innovations.

“DraftKings Predictions marks a pivotal achievement and underscores our continuous dedication to providing products that resonate with our customers’ interests,” said Corey Gottlieb, DraftKings’ Chief Product Officer.

“We are committed to crafting an unmatched user experience, utilizing our key alliances with ESPN and NBCUniversal to deliver an authentic, real-time service that keeps pace with the fast-moving sports environment. With our operational infrastructure, marketing and analytics frameworks, and advanced in-house technologies, we believe we are positioned to lead in this domain for years to come.”

Access to DraftKings Predictions is determined based on a user’s state of residence, not their physical location. The platform is available in 38 states, including those with sports event contracts such as California, Florida, Georgia, and Texas. However, residents in states without access to DraftKings Predictions, like Pennsylvania, are ineligible to participate, even if they travel to another state.

The initial offerings on this platform include contracts linked to outcomes of sporting events. Contracts for professional sports include the NFL, NBA, and NHL, while contracts for college sports cover both football and basketball. In addition to sports, the platform also offers trading options pertaining to cryptocurrency, economic indicators, commodities, and the stock market. DraftKings has suggested that entertainment and cultural markets may be added in the future.

DraftKings has applied its established responsible gaming framework to this new platform through a Responsible Trading initiative. This program is built into the DraftKings Predictions app and emphasizes education and awareness concerning event contract trading. Users can access tools such as deposit limits, cool-off periods, self-exclusion features, and educational resources via the DraftKings Responsible Trading Center.

The launch also includes promotional incentives for early adopters. DraftKings is offering a potential prize of $1 million through DraftKings Predictions, and in states where sports event contracts are permitted, users may receive a bonus of up to $25 based on their initial trade.

The expansion into prediction markets has faced resistance in California, where tribal gaming interests have claimed exclusive rights over gambling operations. Victor Rocha, Conference Chair of the Indian Gaming Association, noted that DraftKings and California find themselves “once again in conflict.” Tribal advocates have previously pursued legal action against sportsbook entities and may do the same regarding DraftKings Predictions.