DraftKings has officially entered the fast-growing prediction markets space, launching a new standalone platform even as Wall Street analysts warn that the move comes with significant risks.
On Friday, the sports betting giant announced the debut of DraftKings Predictions, a dedicated app and web platform operating under the oversight of the U.S. Commodity Futures Trading Commission (CFTC). The product allows eligible users to trade event-based contracts tied to real-world outcomes, marking DraftKings’ formal expansion beyond traditional sports betting.
The company said it will initially offer prediction contracts focused on sports and financial events, with plans to expand into categories such as entertainment and culture. The platform will be available across 38 states, opening access to sports-related event contracts in major markets like California, Texas, Florida, and Georgia, where conventional online sports betting remains restricted.
DraftKings plans to connect the platform to CME Group at launch and later expand to multiple exchanges. The move follows its October acquisition of Railbird, a federally licensed prediction markets platform, signaling months of preparation behind the scenes.
“DraftKings Predictions is a significant milestone,” said Chief Product Officer Corey Gottlieb, adding that partnerships with ESPN and NBCUniversal will help deliver a real-time, engaging product.
DraftKings joins a rapidly crowding field dominated by Kalshi and Polymarket, with rivals such as Robinhood, Coinbase, Interactive Brokers, and FanDuel also moving into event contracts.
Despite the launch, Truist Securities struck a more cautious tone, cutting DraftKings’ price target to $43 from $45 while maintaining a buy rating. Analysts cited rising risks, including conservative revenue assumptions, launch costs, and regulatory uncertainty. Truist also flagged ongoing legal disputes over whether sports prediction contracts constitute sports betting — a debate that could ultimately reach the U.S. Supreme Court.
DraftKings shares rose modestly on Monday, continuing a rebound from November lows. Still, the stock remains well below its 2025 peak, highlighting investor caution as the company bets big on prediction markets’ future.