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A brilliant find by Geoff Zochodne of Covers.com.
Zochodne observed the following as it related to DraftKings and its apparent desire to enter the world of predictions markets (a la Kalshi).
"Was circling back on "DraftKings Predict" and saw that just days after @DustinGouker first reported it was registered with the National Futures Association, it, uh, de-registered, according to the NFA's site."
Was circling back on "DraftKings Predict" and saw that just days after @DustinGouker first reported it was registered with the National Futures Association, it, uh, de-registered, according to the NFA's site. pic.twitter.com/EfuSreWHgK
— Geoff Zochodne (@GeoffZochodne) April 17, 2025
Zochodne took things one step further and reached out to DraftKings directly in order to get their take.
"DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration."
That still doesn't explain why they de-registered so quickly after.
For the moment at least, Kalshi seems to be the only player in the US sports prediction market as a trading exchange. The company is the first to be regulated by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM), which means it must adhere to all CFTC regulations.
Some states, like Nevada and New Jersey, have placed a target on Kalshi's head. That company has fought back with lawsuits of its own.
Kalshi CEO Tarek Mansour told Axios in an interview that the company should not be treated like sportsbooks, which are regulated on a state-by-state basis.
"I just don't really know what this has to do with gambling," he said at an office in Washington. "If we are gambling, then I think you're basically calling the entire financial market gambling.
"In our markets, you're trading in an open financial marketplace. You're trading against other people," he added." If you go to a traditional model, you're betting against a sportsbook. They're setting the odds and they make money if you're losing money."
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