Written by :
Published on :
It's official. DraftKings is now entering the prediction market space.
One of the two largest regulated online sports betting companies in the US launched its new platform Friday morning despite objections from a handful of US states.
As noted by Nathan Boomey of Axios, The rise of prediction markets such as Polymarket and Kalshi has upended the betting landscape, allowing users to risk money on sports outcomes even in states that haven't legalized wagering.
DraftKings Predictions will provide markets on politics, entertainment and other events.
In addition to existing prediction market firms like Kalshi and Polymarket, DraftKings new product will compete with a handful of offshore gambling sites like BetUS which offer similar events prop bet options. BetUS is licensed outside the US.
Customers with existing DraftKings accounts will be able to use their individual log-ins to access DraftKings Predictions but will not be able to use funds from their sportsbook wallet on the prediction market product.
For the moment at least, DraftKings will not be offering parlays as part of their new prediction market product.
Last week, DraftKings competitor Fanatics announced it too had launched a prediction markets product.
Future Uncertainties
A number of US states - mostly those that currently regulate sports betting - have expressed disapproval of the prediction market model. Some like Nevada and New Jersey have even taken on Kalshi in the courts.
A few of the states voicing concerns over prediction markets just happen to license sports betting companies like Fanatics and DraftKings as well.
To get around this dilemma, Fanatics plans to operate in 24 states where it does not currently operate a sportsbook. Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah are among the states where the Fanatics prediction market is expected to launch.
Last month, DraftKings and FanDuel formally had their sports betting license applications pulled out of the state of Nevada.
“It has been made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts,” Nevada Gaming Control Board Chairman Mike Dreitzer said at the time. “This conduct is incompatible with their ability to participate in Nevada’s gaming industry.”
- Chris Costigan, Gambling911.com Publisher
