Published on: December 19, 2025, 12:48h.
Updated on: December 19, 2025, 12:48h.
- The major sportsbook has unveiled its prediction markets platform.
- Available in 38 states, this includes areas where sports betting is not allowed, such as California, Georgia, and Texas.
- Market trades will be managed through a CME Group exchange rather than Railbird.
DraftKings (NASDAQ: DKNG) has announced the launch of its prediction markets platform, marking a significant move for an industry leader into yes/no derivatives.
DraftKings Predictions, initially previewed two months prior, will process trades through CME Group (NASDAQ: CME) rather than Railbird Technologies, which DraftKings acquired in October. The company indicates that it aims to integrate with multiple exchanges. CME is also a partner of FanDuel Predicts, the prediction market solution from that sportsbook.
“DraftKings Predictions intends to connect to various exchanges, beginning with CME Group at launch, to provide eligible customers extensive market options, including global benchmarks, economic indicators, and sports contracts,” stated the company. “This will also feature the upcoming integration of recently acquired Railbird Technologies Inc. and its subsidiary, Railbird Exchange, LLC, expanding market options, fostering product innovation, and offering competitive economics in the long run.”
The Boston-based company shared that its event contracts platform will be available on various mobile app stores as the rollout progresses in the coming days.
DraftKings Predictions Available in 38 States, But Specifics Matter
The gaming operator confirmed in a press release that DraftKings Predictions is accessible in 38 states, which extends “the company’s overall market reach.” However, sports contracts that have elevated prediction markets to prominence will not be fully accessible in all those states.
Sportsbook operators venturing into event contracts aim to capitalize on both arenas while circumventing the regulatory challenges associated with yes/no derivatives in states without approved sports wagering. Therefore, out of the 38 states where DraftKings Predictions is operational, all platform markets will be accessible in 16, including California, Texas, Florida, and Georgia.
Although DraftKings Predictions will not provide sports derivatives in over a dozen states, customers can still engage in wagering on economic and political events, among other options, in those locales. This group comprises significant sports betting markets such as Michigan, New Jersey, and New York. Residents of Connecticut will be limited to trading financial contracts on the platform.
Regions where sports derivatives are unavailable include Arizona, Illinois, Nevada, Ohio, and Pennsylvania. Recently, Arizona regulators revoked Underdog’s fantasy sports license due to its prediction markets initiatives, suggesting similar actions for other operators. However, some analysts believe DraftKings and FanDuel remain safe in that state.
Rising Competition in Prediction Markets
Competition within prediction markets has intensified notably this week. Not only has DraftKings made its debut, but Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD) have also revealed plans to deepen their engagement in the event contracts domain.
With established customer bases and strong brand recognition, sportsbook operators like DraftKings and FanDuel could pose significant competition for companies like Kalshi. Additionally, DraftKings benefits from media partnerships with ESPN and NBC, which prediction market operators are striving to secure.
“In conjunction with our operational scope, marketing strategies, analytics infrastructure, and sophisticated in-house technology, we believe we are optimally positioned to lead this sector in the long term,” stated Corey Gottlieb, DraftKings’ chief product officer.