DraftKings became the latest sports betting operator to jump into the prediction market industry last week. The new DraftKings Predictions platform is now available in 38 states, offering event contracts for sports and entertainment.
Prediction markets are regulated by the Commodity Futures Trading Commission. Operators have faced significant pushback from state gaming regulators. Firms like Kalshi have fought efforts to halt their operation in states with legalized sports betting.
DraftKings Prediction users will be able to connect with several exchanges on the platform, according to company officials.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” Chief Product Officer Corey Gottlieb said. “Along with our operational footprint, marketing and analytics infrastructure, and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”
Major Sportsbooks Launch Prediction Market Platforms
Along with making the platform available in some states with traditional sports betting, DraftKings Prediction is also available in states without legalized betting, including California, Georgia, and Texas.
That also includes Florida, where the Seminole tribe has a state-sponsored monopoly on sports wagering. The DraftKings prediction market app is expected to be available in app stores in the coming days.
Sports betting operators have faced significant competition from firms like Kalshi and Polymarket since the platforms began offering PMs during March Madness earlier this year. That expanded to other sports options, and sportsbooks have since sought to make a move into the industry.
FanDuel announced a sports prediction offering in November. Fanatics launched a prediction market platform earlier this month.
Despite major sportsbooks launching prediction markets, there is still some murkiness surrounding prediction platforms’ expansion into sports. After initially winning in court to continue operating in some states, Kalshi recently lost lawsuits in Nevada and Maryland.
Several other states have also demanded the platforms cease sports market operations. Federal lawmakers recently circulated a draft letter criticizing the industry, pointing to a lack of consumer protections.
