Draftkings Eyes Crypto Offerings As It Expands Into Prediction Markets

DraftKings launches a prediction markets app in 38 states, setting the stage for future crypto-linked contracts under a regulated US derivatives framework.

DraftKings is expanding beyond sports betting into the realm of prediction markets, laying the groundwork for future crypto-linked contracts as regulated event trading gains momentum in the United States.

As Bloomberg reported, the company announced on Friday that it has launched the DraftKings Predictions app, which allows users to trade contracts on sports and financial outcomes. At launch, the app is available in 38 states, with sports-related trading permitted in 17 of them.

DraftKings ultimately plans to expand its prediction market offerings beyond sports and finance to include contracts linked to crypto, entertainment and cultural events, according to Bloomberg.

DraftKings’ push into prediction markets is underpinned by regulated derivatives infrastructure connected to CME Group–style market standards.

The company said trading will be conducted through Railbird Exchange, a derivatives venue it acquired and which is registered with the US Commodity Futures Trading Commission, allowing DraftKings to offer event-based contracts within an established regulatory framework.

As a publicly traded US-based sports betting and entertainment company, DraftKings brings increased visibility and mainstream exposure to prediction markets and potentially crypto-linked contracts as regulated event trading gains traction in the United States.

In early November, DraftKings reported third-quarter revenue of $1.14 billion, up 4% year over year, alongside an adjusted loss of $127 million. The company said it expects to generate up to $6.1 billion in revenue this year, roughly triple the amount it generated in 2022.

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While DraftKings’ prediction market offering is not built on blockchain or decentralized technology, the broader sector has gained momentum in recent years largely due to crypto-native platforms that redefined how prediction markets operate.

Source: CoinTelegraph