DraftKings Predictions was registered as a Futures Commission Merchant (FCM) with the National Futures Association, allowing it to solicit and accept orders for futures contracts, the company announced Wednesday.
Key Takeaways
- DraftKings launched its in-house exchange at the end of June.
- FCM licensing means DraftKings can act as its own broker.
- DKeX generated annualized trading volume exceeding $11 billion during the week ending June 21.
DraftKings confirmed the platform’s upgraded status Wednesday morning on X, saying it took an “important step” in expanding its offerings.
“As always, DraftKings remains focused on operating responsibly and in compliance with applicable regulatory requirements,” the post reads.
An FCM allows users to buy and sell futures contracts, options on futures, off-exchange forex contracts or swaps, and accepts money or assets to support orders. In other words, FCMs manage customer accounts and allow users to access Designated Contract Markets (DCMs), also known as exchanges.
In simpler terms, FCMs are the front-facing product with which customers engage. DCMs handle the back-end processing.
DraftKings Predictions’ FCM licensing means the platform can act as a broker itself, eliminating the need for a third party separating the consumer and the exchange. All operations can now remain in-house thanks to the company’s acquisition of the Railbird exchange infrastructure.
DraftKings Predictions initially relied on CME Group when it launched in December 2025. It pivoted and used Railbird’s technology to form DKeX, its proprietary, CFTC-regulated exchange, on June 26.
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Growing the prediction platform
The expansion of DraftKings Predictions is part of DraftKings’ larger commitment to enhancing its product offerings.
DKeX was already integrated into the DraftKings: Sports & Casino app, part of the company’s vision of constructing a “super app” that includes sports betting, online casino games, prediction markets, and online lottery. Only its daily fantasy contests will be housed separately.
“DraftKings is at its best when building innovative platforms that bring together technology, customer focus, and world-class execution to shape the future of sports engagement,” Jason Robins, CEO and cofounder of DraftKings, said in a press release following the launch of DKeX. “The momentum we've seen on DraftKings Predictions in recent months reflects the significant progress we've made in delivering a more seamless and connected experience for sports fans.”
DraftKings’ hierarchy recently confirmed its prediction exchange handled $3.1 billion in annualized trading volume in May, representing a 34% month-over-month increase. The World Cup helped that number vault to approximately $11.3 billion in annualized trading volume for the week that ended June 21, an increase of 264.5% on the May figure.
FCM registration allows DraftKings to improve margins by eliminating third-party brokerage fees.
Not taking hold just yet
Prediction market sites have gained significant momentum over the last year, specifically during the World Cup. The American market generated a national trading volume of over $50 billion in June, led by $31 billion from market leader Kalshi.
Despite that growth and the excitement within the industry, DraftKings’ stock price ($25.70 at the time of writing) is down about 1.9% since the morning DKeX was launched ($25.20).
