One of the biggest names in online gambling in the United States, DraftKings, appears poised to join yet another industry. On a recent earnings call, CEO Jason Robins hinted at the company moving towards sports event contracts, as the predictions market space has become the next hot space for online sports prediction enthusiasts.
In July 2024, DraftKings took another step toward the sports-related event contracts space. DraftKings Predict is a newly registered entity with the National Futures Association (NFA), the regulatory body for the Commodity Futures Trading Commission, which oversees the sports derivatives markets. Paul Liberman, a co-founder and CEO of DraftKings Predict, plays a significant role in this new venture.
For those still unfamiliar with the prediction markets space, unlike traditional betting, prediction markets use sports event contracts, similar to stocks, to buy and sell positions on event outcomes. Using event-based contracts, users buy “shares” in the outcome of an event, such as “Will the Pittsburgh Steelers win the Super Bowl?”.
The prices of “Yes” and “No” contracts fluctuate similar to sports betting odds, based on market demand, real-time news, and overall market sentiment. Unlike sports wagering, which has a closing line, users at prediction markets can buy, sell, or hold their position all the way up until the final whistle of an outcome.
Focused on future events, the derivatives markets’ nature of these contracts operate more like the stock market than the betting market, thus the need for operators to get approval from the National Futures Association.
Let’s take a look at DraftKings’ potential entry into the space, including what to expect, a potential DraftKings Predict Promo offer, and more in this ultra early DraftKings Predict review.
You can also check out our DraftKings Promo Code or DraftKings Pick 6 Promo Code for more info on the sportsbook.
DraftKings Predict Timeline
DraftKings took a significant step toward the prediction markets space by filing with the National Futures Association, which was submitted on July 30, 2024. Filed under the name Gus II LLC, the CEO of DraftKings Predict was also listed, a current board member at DraftKings.
The application submission was then followed up by comments from CEO Jason Robins on an earnings call in early 2025, stating a keen interest in the prediction market space. Unlike traditional betting markets that need approval from state gaming commissions, such as the Nevada Gaming Control Board, prediction markets need Federal approval first from the Commodity Futures Trading Commission CFTC.
Various sorts of regulatory developments are anticipated in the prediction markets, highlighting the uncertainty and complexity surrounding the market's future.
Prediction market platform Kalshi, a current leader in the space, is awaiting a key CFTC ruling sometime in 2025, a decision that will likely dictate the speed at which DraftKings predict is rolled out. With the friendliness of the Trump administration in tow, as Donald Trump Jr. is an indirect owner in Kalshi, many expect giant leaps forward on deck for the industry in 2025.
Read More - Kalshi Referral Code
The prediction market space has a keen interest in the possible launch time of DraftKings predict, and so far, DraftKings declined all comments on specifics. From a regulatory standpoint, they now just await approval from the NFA, the approval body of the Commodity Futures Trading Commission CFTC. A lot of regulatory clarity is expected from the upcoming CFTC ruling.
Sometime in mid-2025, the prediction market Kalshi will get a key ruling from the Commodity Futures Trading Commission on their sports event contracts, which will dictate the coming years in the space. According to industry experts, the speculation points toward a DraftKings Predict launch date of sometime in late 2025 or early 2026.
When things do go live, users can expect a DraftKings Predict new user bonus to be available right away, as the company will be competing with the likes of prediction market Kalshi and Polymarket on sporting event-based contracts. With an existing board member listed as the CEO of DraftKings Predict, per filings, their legal risks are already being mitigated with a seasoned professional at the helm. It will be interesting to see how the situation plays out with the CFTC ruling.
DraftKings Predict and Their Intro to Prediction Markets
While DraftKings declined to state their exact intentions with the product, CEO Jason Robins mentioned on an investor call in February his desire for the company to venture into the space, allowing users to bet on the outcomes of future events. As an indirect owner in whatever product DraftKings rolls out, Robin’s surely was intentional with the timing of his initial comments.
With Kalshi and Polymarket, the major players in the space, financial services company Robinhood has also signaled an interest in the space. The idea of using event contracts, instead of traditional bookmaking, allows all of these operators to offer a product similar to online sports betting, without the heavy state scrutiny that comes with it.
DraftKings Predict will enable users to place bets on various event outcomes. Robinhood’s interest shows the prediction market industry is expanding beyond just sports enthusiasts, with the financial industry at large now showing interest. Robinhood’s interest also indicates that the pending CFTC ruling isn’t scaring companies with big pockets away from the space.
How Sports Prediction Markets Work
At their core, sports prediction markets work similarly to financial exchanges, allowing users to buy and sell event-based contracts tied to event outcomes, such as whether the Los Angeles Lakers will win the NBA Finals. Unlike sportsbooks, where sports betting odds are set by oddsmakers, event contract prices on the "yes" and "no" are set by market activity.
Users can then buy and sell, as well as hold, contracts all the way through the end of the event. With event contracts able to be traded through the end of an event, there is no closing line, like users at sportsbooks see. Users profit by selling contracts at a higher price than they paid for it if their contract prediction is true.
With no closing line set by a sportsbook, sports event contracts are peer-to-peer, meaning you are buying or selling directly with another user.
What Sports Are Available On Sports-Related Event Contracts?
Based on what we've seen rolled out on their competition's sites, such as Kalshi and Polymarket, we can make some predictions on what DraftKings will offer. Typically, major leagues such as the MLB, NFL, NBA, and NHL dominate their offerings, with sports contracts on the outcomes of everything from which team will win the championship to player stats.
Other sports like Golf and UFC are also beginning to pop up, signaling an increase in user interest to go beyond the major sports. In the future, we could see even more niche sports added, such as college football and basketball, as the industry looks to compete with its sportsbook counterparts.
Regulatory Environment of Prediction Markets
DraftKings Predict’s legal status hinges on the regulatory environment of prediction markets, which is constantly evolving. As a formally recognized entity by the National Futures Association, DraftKings Predict is navigating these regulatory challenges with a structured approach. The biggest regulatory matter facing the industry is Federal CFTC approval, which would instantly unlock the market in all 50 states overnight.
State gambling agencies, such as the Nevada Gaming Control Board, are putting up a fight, as they see the industry as gambling and a direct threat to their revenue streams. Additionally, the American Gaming Association is also fighting back, making regulatory clarity even more difficult for operators in the emerging space.
Regulatory Framework
The U.S. prediction market industry falls under the CFTC's jurisdiction, which in turn is governed by the Commodity Exchange Act. The aforementioned National Futures Association is the regulatory arm of the CFTC and the first line of defense for operators to get through.
DraftKing Predict market availability will ultimately be dictated by the CFTC, and their forthcoming ruling on the industry is massive for the future prospects of not just DraftKings but all operators in the space today.
Regulatory Clarity
Unlike sportsbooks, which have rules clearly defined by individual state legislation, the regulatory framework for prediction market companies is way less clear. A historically conservative and cautious agency, the CFTC is moving towards more friendly legislation.
Industry Implications of DraftKings Predict
Make no mistake, despite the uncertainty around the industry, a DraftKings product would immediately help the space explode. With the brand recognition alone, DraftKings predict would bring prediction markets even more into the mainstream.
If successful, some of the other best sportsbooks, such as FanDuel (FanDuel Promo Code) and Caesars (Caesars Sportsbook Promo Code), will likely follow suit, bringing even more innovation into the industry. Robinhood’s interest has signaled to the market that there are serious dollars at stake, and as technology advances, so will the industry.
Future of Sports Betting and Prediction Markets
There are a variety of ways the future of sports betting and prediction markets can evolve from here, either as parallel industries or direct competitors. The advance of blockchain technology is one avenue for the future of both industries, with the contract nature of prediction markets likely being able to use the blockchain to orchestrate trades.
Artificial intelligence (AI) driven odds is another hot topic that the prediction markets could see as a result of their user base becoming more advanced. Regardless of the future, DraftKings is poised to use its tech-focused processes to make for an intuitive experience for its users on day one.
Prediction Markets and Responsible Gaming
Ensuring responsible gambling is a core pillar of the success that DraftKings has seen thus far, and we expect their DraftKings predict product to be no different. Offering tools such as self-exclusion lists, deposit limits, and a robust educational resource library, responsible gaming is critical for all prediction markets. There are even telephone number options to call if you think you have a problem, such as 1-800-GAMBLER, which is a national service for problem gambling.
DraftKings Customer Service Experience
As seen in its sportsbook and daily fantasy sports offerings, the customer service experience at DraftKings is world-class. While there is no telephone number to call, they do offer 24/7 live chat, an email, as well as a comprehensive FAQ for answers to most basic questions. With this new product, a "How Does Draftkings Predict Work" page is almost surely going to be available.
Latest 2025 DraftKings Predict Updates
As of March 27, 2025, DraftKings Predict appears to very much still be in development, as it awaits approval of their NFA application (submitted in July 2024). CEO Jason Robins continues to be bullish on the industry at large, stating in a February call with investors that they are awaiting the 2025 CFTC ruling before announcing any next steps and challenging timelines.
According to industry experts, beta testing could begin sometime in mid-2025, with a launch date being set from there. Expect DraftKings to continue to capitalize on growing positive sentiment across the industry.