DraftKings launches standalone predictions app under CFTC oversight

DraftKings has launched a standalone predictions app, formally entering federally regulated prediction markets under the oversight of the U.S. Commodity Futures Trading Commission, the company said Friday.

The new product, called DraftKings Predictions, allows eligible users to trade event contracts tied to real-world outcomes, with sports and financial markets available at launch. The app is separate from DraftKings’ core sportsbook and will roll out across major app stores in the coming days, according to a release.

The launch follows months of signaling from DraftKings executives that prediction markets could help the company reach customers in states where traditional online sports betting remains illegal.

During a November earnings call, CEO Jason Robins said prediction markets could expand DraftKings’ total addressable market without replacing its core sportsbook business.

Its event contracts will be available in 38 states, including large markets such as California and Texas, where online sports betting is not permitted.

At launch, DraftKings stated that the app will route trades through the CME Group, with plans to expand liquidity and market offerings over time. The company has previously said that Polymarket will serve as the designated clearinghouse for its predictions platform following DraftKings’ acquisition of Railbird Technologies, a CFTC-regulated exchange operator.

Prediction markets have drawn increased attention in recent months as platforms such as Polymarket and Kalshi expand into sports-related contracts and attract growing trading volumes.

Kalshi has widened its lead over Polymarket in recent months, recording more than $5.8 billion in trading volume in November, compared to approximately $1.8 billion on Polymarket. According to The Block's data, December volumes stood at roughly $3.4 billion and $1.25 billion, respectively.