DraftKings Enters Prediction Markets, Eyes Crypto Contracts
DraftKings is moving beyond sports betting by launching the DraftKings Predictions app, which enables users to trade contracts on sports and financial outcomes. The app is available in 38 states, with sports trading active in 17. DraftKings plans to further expand into contracts tied to crypto, entertainment, and other events. Trading operates through Railbird Exchange, a CFTC-registered entity, ensuring compliance with US derivatives regulations. This development brings mainstream exposure to regulated event trading and lays groundwork for future crypto-linked contracts. DraftKings’ revenue reached $1.14 billion in Q3 2023, with projections of up to $6.1 billion for the year. While DraftKings’ new offering is not blockchain-based, crypto-native prediction markets—such as Polymarket and other regulated venues like Kalshi—have grown in popularity, particularly during major political events. Financial infrastructure providers and crypto exchanges like Coinbase and Gemini are also expanding into prediction markets, reflecting broader momentum and innovation in the sector.
