DraftKings launches standalone predictions app under CFTC oversight
DraftKings launched DraftKings Predictions, a standalone app for federally regulated prediction markets overseen by the CFTC.Summary
DraftKings has introduced DraftKings Predictions, a new, separate application that allows eligible users to trade event contracts based on real-world outcomes in sports and financial markets. This launch signifies DraftKings' formal entry into federally regulated prediction markets under the oversight of the U.S. Commodity Futures Trading Commission (CFTC).
The company believes prediction markets can help reach customers in states where traditional online sports betting is prohibited, with event contracts available in 38 states, including California and Texas. Trades on the app will initially route through the CME Group, utilizing Polymarket as the designated clearinghouse following DraftKings' acquisition of CFTC-regulated exchange operator Railbird Technologies.
The move comes as prediction markets like Polymarket and Kalshi gain traction, with Kalshi recently recording significantly higher trading volumes than Polymarket in November and December.
(Source：The Block)