DraftKings hopes to score big with new prediction markets app

DraftKings is making a bold move into the prediction markets industry, unveiling a new technology that allows users to trade contracts tied to sporting and financial events. The company’s latest venture, DraftKings Predictions, will offer event contracts for trading in 38 states, with plans to expand into other markets such as entertainment and culture in the future. Regulated by the Commodity Futures Trading Commission, DraftKings Predictions will be available as a mobile app and web product.

Corey Gottlieb, chief product officer of DraftKings, expressed confidence in the company’s ability to dominate the prediction markets space in the long run. With a strong operational footprint, marketing infrastructure, analytics capabilities, and advanced technology, DraftKings is well-positioned to lead the way in this emerging market.

The DraftKings Predictions app, set to launch on major app stores soon, will connect with multiple exchanges, starting with the derivatives marketplace CME Group. Users can easily trade event contracts by answering yes/no questions related to events like NFL games and determining their wager amount. DraftKings will serve as a broker for these trades, with users initiating the transactions that are then executed on the exchange.

While DraftKings faces competition from other prediction markets like Kalshi and Polymarket, the company’s acquisition of Railbird Technologies in October signals its commitment to expanding into prediction markets. However, some platforms without a sports wagering license have encountered regulatory challenges, as event contracts are subject to different regulations than traditional sports bets.

Critics have raised concerns about the potential impact of prediction markets on sports, with NCAA President Charlie Baker warning about threats to competition integrity and recruiting processes. Despite these challenges, DraftKings remains focused on diversifying its offerings beyond sports betting, leveraging its expertise in fantasy sports and mobile sports betting through products like DraftKings Sportsbook.

Based in Boston, DraftKings was founded in 2012 and has established itself as a leader in the sports entertainment and gaming industry. As the company continues to innovate and expand into new markets, DraftKings Predictions represents a strategic move to capitalize on the growing popularity of prediction markets.

This article was edited by Alain Sherter.