DraftKings announced Friday the launch of its proprietary markets exchange, DKeX, an entirely internal operation licensed by the Commodity Futures Trading Commission (CFTC).
Key Takeaways
- The new exchange will help DraftKings keep its prediction market operations fully internal.
- DraftKings said 30% of its traders have used Combos since they were launched in May.
- The company recently reported $3.1 billion in annualized trading volume in May, up 34% month over month.
DKeX is integrated into the DraftKings: Sports & Casino app. The exchange allows DraftKings to avoid third-party exchange fees by using technology it developed and acquired.
“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 co-founder of DraftKings, said in a press release. “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.”
Robins also detailed how DKeX’s platform is vertically integrated, making it easier to service and innovate DraftKings Predictions.
The announcement comes as the World Cup drives increased prediction market trading, with DraftKings Predictions seeing approximately $11.3 billion in annualized total trading volume for the week that ended June 21.
Enjoying Covers content? Add us as a preferred source on your Google account“The launch of DKeX and its integration into our unified app is a major step forward in delivering a best-in-class customer experience in sports nationwide,” said Jeanine Hightower-Sellitto, DraftKings senior vice president and general manager of prediction markets. “DKeX is the latest milestone in that progression and creates new opportunities to further expand the offering ahead of some of the biggest moments on the sports calendar.”
DraftKings Predictions catching on
Prediction markets are just one of DraftKings' business lines. The company also offers sports betting, casino gaming, daily fantasy sports, and lottery. It is working on combining all of those except for fantasy contests into its “Super App.”
Part of DraftKings’ product development has seen the company dive deep into the prediction market experience. Friday's announcement notes Predictions Sports Combos - the equivalent of parlays - have been a hit, as 30% of its traders have used Combos since they launched in mid-May.
“The pace of development across Predictions has been substantial, from expanding our event contract offerings to introducing key features like combos, which customers have quickly embraced,” the company wrote.
DraftKings noted it expects its growth to continue in July and beyond with the development of DKeX. Its prediction platform launched in December 2025.
Prediction markets are available for sports outside of the World Cup, including those in the live tab with real-time events.
DraftKings heavily investing in prediction markets
DraftKings Predictions surpassed $1 billion in consumer trading volume in April. It grew to $1.3 billion in May, while the annualized trading volume rose to $3.1 billion, a 34% month-over-month increase.
Robins said during a Q1 2026 earnings call in May that the company’s prediction markets would be a central focus moving forward as they continue to soar in popularity. Additionally, Robins pledged to invest $200 million to $300 million into DraftKings Predictions before the end of the year.
Prediction markets continue to attract significant investment and trading activity. Market leader Kalshi reported $5.1 billion in trading volume during the first week of the World Cup alone, spurring it to seek a new round of funding at an overwhelming $40-billion valuation.
