DraftKings has introduced a brand new standalone app for real-money prediction markets, changing into the newest main participant to enter an area that features crypto-native platforms similar to Polymarket and Robinhood’s occasion contracts.
The product, referred to as DraftKings Predictions, will permit customers to commerce the outcomes of real-world occasions, together with sports activities and finance, the corporate introduced Friday.
It’s registered with the U.S. Commodity Futures Buying and selling Fee (CFTC) and the Nationwide Futures Affiliation and might be out there for getting and promoting occasion contracts in 38 states.
To boost its market choices, DraftKings plans to attach with exchanges similar to CME Group and incorporate its current acquisition Railbird Applied sciences. The corporate mentioned the mixture is anticipated to develop the forms of markets out there and enhance economics over time.
The transfer places DraftKings in direct competitors with Polymarket, a well-liked crypto-based prediction market platform, and Robinhood (HOOD), which launched occasion contracts for sports activities outcomes earlier this yr. In contrast to Polymarket, which depends on blockchain-based infrastructure and stablecoins, DraftKings operates completely inside the current monetary system and app ecosystem.
Except for the AI growth, prediction markets have quietly develop into one of many largest monetary information tales of the yr. As soon as a distinct segment nook of cryptocurrencies, the marketplace for betting on real-world outcomes, from elections to sports activities to financial knowledge, has burst into the mainstream. Platforms like Polymarket and Kalshi have posted report buying and selling volumes, attracted retail merchants and hedge funds alike, and develop into double-digit billion-dollar corporations.
Driving this variation is a mixture of regulatory readability and cultural momentum. The CFTC’s inexperienced mild on sure occasion contracts opens the door to extra structured and compliant merchandise, whereas the general public’s urge for food for real-time high-stakes hypothesis has by no means been higher.
