DraftKings has secured significant federal authorizations, bringing it one step closer to launching the DraftKings Predictions platform in the U.S., as competition escalates in the rapidly expanding prediction market arena.
The company’s subsidiary, Gus III LLC, gained approval on December 4 from the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) to function as an introducing broker (IB). The entity is now recognized as a member of the NFA and an approved swap firm, granting DraftKings official entry to federally regulated, event-driven derivatives markets.
“This registration signifies a crucial advancement in the company’s federally regulated operations and backs the imminent launch of DraftKings Predictions,” a representative informed SBC Americas. “We value the NFA’s thoroughness in this process and are dedicated to maintaining responsible, transparent operations fully compliant with federal regulations.”
This approval enables DraftKings to venture beyond conventional sports betting by providing derivatives-style event contracts linked to future outcomes. Its IB and swap-firm designations also afford the flexibility to direct orders to exchanges beyond its own infrastructure as the company expands this new venture.
DraftKings’ move into this sector follows its acquisition of Railbird Technologies Inc., a CFTC-licensed Designated Contract Market (DCM), which grants the operator direct access to regulated real-money event markets. Although Railbird is currently inactive, details regarding the acquisition were not disclosed.
Interest in prediction markets has surged in both the financial and gaming sectors. CME Group and Intercontinental Exchange are investigating how existing derivatives licenses can facilitate participation in gambling-adjacent markets. CME has partnered with FanDuel to develop event-based contracts linked to economic indicators, suggesting a deeper involvement from Wall Street firms.
At the same time, an increasing number of operators, including PrizePicks, Underdog, Novig, Polymarket, Kalshi, Truth Predict, and Fanatics, are vying for market share. Fanatics introduced its prediction markets app this month after acquiring IB-licensed Paragon Global Markets. Kalshi reported approximately $4.4 billion in trading volume for October, marking its strongest month yet, while Polymarket has bounced back from a decline in user activity.
DraftKings has not yet revealed a launch date for DraftKings Predictions, but the regulatory momentum indicates that a launch is imminent. The platform will enable users to trade yes-or-no contracts related to finance, culture, and entertainment. The company has yet to determine if it will include sports-related event markets, a proposition that could encounter pushback from state gaming regulators prohibiting operators from managing both state-regulated sportsbooks and federally regulated exchanges.
CEO Jason Robins has expressed that DraftKings is “enthusiastic about the prospective opportunities that prediction markets could present for our business” and is “actively exploring” this sector as regulations evolve. However, he minimized competitive threats in October, stating that he “does not envision a scenario” where customers would prefer platforms like Polymarket or Kalshi over established sportsbooks in states with legalized wagering.
This approval concludes a protracted regulatory journey for DraftKings. The company originally filed with the NFA in 2024 under a different corporate structure before retracting that filing. It re-submitted its application in June 2025 under Gus III Holdings LLC, listing Robins, CFO Alan Ellingson, and co-founder Paul Liberman in its documentation. DraftKings also withdrew a separate federal application in April, defining prediction markets as an “emerging product that warrants careful consideration.”
As it prepares for launch, DraftKings has withdrawn from the American Gaming Association and introduced Spanish-language features aimed partially at users in non-sports betting states like California and Texas.