DraftKings has launched a new standalone app for real-money prediction markets, becoming the latest major player to enter a space that includes crypto-native platforms like Polymarket and Robinhood active contracts.
The product, called DraftKings Predictions, will allow users to trade based on the outcomes of real-world events, starting with sports and finance, the company announced on Friday.
It is registered with the Commodity Futures Trading Commission (CFTC) and the National Futures Association and can buy and sell active contracts in 38 states.
To deepen its marketplace offerings, DraftKings will form ties with exchanges such as CME Group and plans to merge with its recently acquired Railbird Technologies. Over time, this consolidation is expected to expand the types of markets available and improve economics, the report said.
The move puts DraftKings in direct competition with popular cryptocurrency-based prediction market platform Polymarket and Robinhood (HOOD), which launched sports event contracts earlier this year. Unlike Polymarket, which relies on blockchain-based infrastructure and stablecoins, DraftKings operates entirely within the existing financial system and application ecosystem.
In addition to the artificial intelligence boom, prediction markets have quietly become one of the biggest financial stories of the year. Once a niche market in the cryptocurrency space, the market for betting on real-world outcomes, from elections to sports to economic data, has exploded into the mainstream. Platforms like Polymarket and Kalshi have seen record-breaking trading volumes, attracted retail traders and hedge funds alike, and become double-digit, multi-billion dollar companies.
Driving this shift is a combination of regulatory clarity and cultural momentum. The U.S. Commodity Futures Trading Commission’s (CFTC) approval of certain event contracts opens the door to more structured, compliant products, and public interest in real-time, high-risk speculation has never been greater.
