DraftKings has launched a standalone predictions application that places the company directly within federally regulated prediction markets under the oversight of the US Commodity Futures Trading Commission. The new app allows eligible users to trade event based contracts linked to real world outcomes, including sports and selected financial indicators, while operating separately from the firm’s core sportsbook business. By structuring the product under federal commodities rules, DraftKings is able to offer access in dozens of states, including large markets where online sports betting remains prohibited under state law. The company said the rollout reflects a strategic effort to expand its reach without challenging existing gaming restrictions, positioning prediction markets as a complementary offering rather than a replacement for traditional wagering products.
The move places DraftKings in more direct competition with established prediction market platforms that have seen rapid growth in recent months as trading activity expands beyond political events into sports related outcomes. Unlike state regulated sportsbooks, federally overseen event contracts allow firms to operate across state lines, creating a unified national market structure. DraftKings stated that trades on the new platform will initially be routed through established clearing and execution infrastructure, with plans to broaden liquidity and contract variety over time. Company executives have previously described prediction markets as a way to increase total addressable market size while maintaining regulatory clarity, particularly in jurisdictions where sportsbook access is restricted or unavailable.
The launch highlights a broader shift in how regulated financial market frameworks are being used to offer exposure to outcome based trading. As prediction markets gain scale, regulators and market participants are closely watching how these products intersect with traditional gambling laws and financial market protections. Industry observers note that the expansion of federally regulated platforms could accelerate competition, compress margins, and draw greater scrutiny over market integrity and consumer safeguards. For DraftKings, the new app represents a calculated diversification that leverages its brand and technology while operating within a different regulatory perimeter. The success of the platform may influence whether other gaming and fintech firms pursue similar models under commodities oversight.
