DraftKings Predictions Launches in 38 States

DraftKings Prediction started accepting event contracts Friday, launching the company’s prediction market platform in 38 states and bringing a gaming leader into the growing industry.

“I think it's a transformational moment for the prediction markets overall,” said Jeanine Hightower-Sellitto, senior vice president of Predictions, in an interview with Covers.

The standalone app and web product will allow users to trade contracts on a wide range of sports events in certain states and other real-world outcomes in finance, entertainment, pop culture, and a host of other areas, per a release announcing the launch. DraftKings Predictions is regulated by the Commodity Futures Trading Commission (CFTC) and will work with derivatives exchange CME Group at launch, with further integration from DraftKings-owned Railbird Exchange in the coming months.

DraftKings Predictions will offer its full range of event contracts in 17 states, including California, Texas, Florida, and Georgia. In 21 states and Washington D.C., all of which DraftKings offers its mobile sportsbook, DraftKings Predictions will only offer event contracts outside of sports. DraftKings Predictions will not be available in 12 states.

“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said Corey Gottlieb, chief product officer of DraftKings, in a statement.

“We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports. Along with our operational footprint, marketing and analytics infrastructure and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”

Larger consequences

DraftKings Predictions brings another major player into the booming industry.

DraftKings joins Kalshi, Polymarket, Robinhood, and Crypoto.com among high-profile companies to offer prediction markets. It is joined by other major online gaming operators including Fanatics, which launched its prediction market earlier this month, as well as Underdog and PrizePicks.

DraftKings reached out to regulators in multiple states before deciding to launch its Prediction Market and the company is confident DraftKings Predictions won't hurt existing relationships with regulators, CEO Jason Robins said on today's DK earnings call

— Ryan Butler (@ButlerBets) November 7, 2025

FanDuel, DraftKings' rival daily fantasy sports innovator-turned sportsbook-turned prediction market operator, is set to launch its platform in the coming days.

The prediction market push by the nation’s major gaming operators underscores the massive potential of sports event contracts, which allow users to trade shares on a game’s outcome or a player’s statistical performance in a way that mirrors sports gambling. Sports event contracts make up most of the established prediction market operators’ trading volume, topping current events, pop culture, and thousands of other topics.

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Increased urgency

Friday’s prediction market launch from one of the leading iGaming and sportsbook operators reaffirms the opportunity cost gaming companies fear if they fall behind the established purveyors. Companies such as Polymarket and Kalshi can charge ahead as they wage court fights, but gaming operators launch prediction markets with a threat to their existing business.

Arizona regulators have already sought to revoke Underdog’s daily fantasy sports license due to its prediction market affiliation with Crypto.com, which previously offered sports event contracts in the state. Other jurisdictions have warned sportsbook operators they could see their licenses revoked for offering sports event contracts - even in other states.

The DraftKings prediction market is now live in the following states: pic.twitter.com/yxUoM3Ie0s

— Ryan Butler (@ButlerBets) December 19, 2025

Prediction market platforms maintain they are under federal commodities trading regulations and not subject to state law. The sportsbook operators have also eschewed a nationwide prediction market launch, offering sports or other event contracts only in states where they are confident they won’t run afoul of existing license parameters.

But pushback from regulators underscores the risk these sportsbook companies are undertaking with prediction market launches. This comes in addition to court battles in multiple states where gaming regulators are looking to force out companies even without sportsbook affiliations for offering any sports event contracts, which the regulators contend constitute illegal sports bets.

Welcoming one of the nation’s two most financially successful sportsbook operators grows the significance of prediction markets. Friday’s launch also means there is another massive company entering what will likely be years of legal fights as the courts determine the legality of what is already a multibillion-dollar industry.

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