DraftKings has released a new standalone application for real-money prediction markets, positioning itself as a key player in a sector that includes platforms like Polymarket and Robinhood’s event contracts.
The new offering, named DraftKings Predictions, allows users to trade on the results of real-world occurrences, initially focusing on sports and finance, the company revealed on Friday.
It is officially registered with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association, and will offer event contracts in 38 states.
To enhance its offerings, DraftKings plans to integrate with exchanges such as CME Group and is set to incorporate Railbird Technologies, which it recently acquired. This integration is anticipated to diversify the available markets and improve economic benefits over time, according to the company.
With this step, DraftKings directly competes with Polymarket, a notable crypto-based prediction market, and Robinhood (HOOD), which this year launched event contracts related to sports outcomes. Unlike Polymarket, which uses blockchain technology and stablecoins, DraftKings operates entirely within the existing financial system and app ecosystem.
In addition to the AI surge, prediction markets have subtly emerged as one of the year’s major financial narratives. Once a niche area in crypto, the markets for betting on real-world results — spanning elections, sports, and economic indicators — have exploded into the mainstream. Platforms like Polymarket and Kalshi have witnessed record-high volumes, attracting both retail traders and hedge funds, and have transformed into multi-billion dollar enterprises.
The driving forces behind this trend include a blend of regulatory clarity and cultural momentum. The CFTC’s approval of certain event contracts has paved the way for more structured and compliant products, while public enthusiasm for real-time, high-stakes speculation has reached unprecedented levels.
