DraftKings has officially entered the prediction markets space, launching a new app across most of the United States and laying the foundation for potential crypto-linked contracts within a regulated derivatives framework.
According to a report from Bloomberg, the company announced on Friday the rollout of its DraftKings Predictions app. The platform allows users to trade contracts tied to sports and financial outcomes. At launch, the app is available in 38 U.S. states, with sports-based event trading currently permitted in 17 of them.
DraftKings plans to gradually broaden its offering beyond sports and traditional financial events. Future contracts could be linked to cryptocurrency prices, entertainment outcomes, and cultural events, signaling a wider push into regulated event-based trading.
Regulated infrastructure supports prediction market expansion
DraftKings’ move into prediction markets is built on regulated derivatives infrastructure that aligns with standards commonly associated with major exchanges. Trading on the platform is conducted through Railbird Exchange, a derivatives venue acquired by DraftKings that is registered with the US Commodity Futures Trading Commission.
This regulatory approval allows DraftKings to offer event-based contracts under an established U.S. legal framework, differentiating its approach from unregulated or offshore prediction platforms.
As a publicly listed U.S. gaming and entertainment company, DraftKings brings increased visibility and institutional credibility to prediction markets. Its nationwide footprint could help accelerate mainstream adoption of regulated event trading, including future crypto-linked products.
Financial performance and growth outlook
In early November, DraftKings reported third-quarter revenue of $1.14 billion, representing a 4% year-over-year increase. The company also posted an adjusted loss of $127 million. For the full year, DraftKings expects revenue to reach as much as $6.1 billion, nearly triple its 2022 total.
Prediction markets gain traction beyond crypto
While DraftKings’ prediction market platform does not rely on blockchain technology, the broader sector has gained momentum largely due to crypto-native platforms that reshaped how event-based trading works.
One of the most prominent examples is Polymarket, which brought prediction markets on-chain by using crypto infrastructure to enable global access and near-instant settlement. Polymarket gained widespread attention during major political events, particularly the 2024 U.S. presidential election.
Interest in prediction markets has also expanded to other regulated venues, including Kalshi, which operates under CFTC oversight.
Beyond consumer-facing platforms, crypto-focused financial infrastructure providers are moving into the space as well. Bitnomial Clearinghouse has indicated plans to support prediction markets tied to cryptocurrencies and macroeconomic indicators.
Major crypto exchanges are also exploring similar offerings. Coinbase has recently outlined plans to incorporate stock trading and prediction markets into its long-term strategy of becoming a comprehensive financial platform.
Meanwhile, the Winklevoss-backed Gemini has launched regulated prediction markets in the United States after securing the required approvals, further highlighting the convergence between traditional finance, gaming, and crypto-driven event trading.
