DraftKings Launches CFTC-Regulated Prediction Markets App for Real-World Events
DraftKings has launched a standalone app called DraftKings Predictions, which is regulated by the Commodity Futures Trading Commission (CFTC) and registered with the National Futures Association. The app allows users in 38 states to buy and sell event contracts based on real-world outcomes, initially focusing on sports and finance.
This move positions DraftKings in direct competition with existing platforms such as Polymarket, Kalshi, and Robinhood’s event contracts. Unlike the blockchain-based Polymarket, DraftKings operates within the traditional financial regulatory framework.
DraftKings also plans to connect its platform to major exchanges like the CME Group and will integrate technology from Railbird Technologies, a company it recently acquired. This integration aims to broaden the range of markets available and improve economic efficiency over time.
The launch of DraftKings Predictions reflects a growing mainstream adoption of regulated prediction markets in the United States, driven by increasing regulatory clarity and demand for real-time speculation. Platforms such as Polymarket and Kalshi have seen record trading volumes and rapid growth into double-digit-billion-dollar valuations, highlighting the expanding interest and liquidity in this sector.
