DraftKings Launches Predictions App for Event Markets

DraftKings Inc., a leading online gaming and sports betting company, launched a new app on December 19 dedicated to prediction markets, marking its entry into a rapidly growing sector that allows users to trade contracts on real-world event outcomes.

The app, called DraftKings Predictions, enables users to buy and sell contracts tied to sports and financial results. It is available for download in 38 U.S. states, though sports-related trading is limited to 17 of those states due to varying local regulations. The platform operates through Railbird Exchange, a derivatives venue that DraftKings acquired and which is registered with the U.S. Commodity Futures Trading Commission. This federal oversight allows the app to function in states where traditional sports betting remains prohibited, such as Texas, by classifying the activity as event-based trading rather than gambling.

Company officials described the launch as an extension of DraftKings' core offerings, leveraging its established infrastructure to connect with major exchanges like the CME Group. Initial markets include outcomes for professional and college sports events, as well as financial instruments such as stock prices...