DraftKings has entered the prediction markets space with the launch of its new standalone DraftKings Predictions app.
Operating under the oversight of the US Commodity Futures Trading Commission (CFTC), DraftKings Predictions allows eligible customers to trade on real-world outcomes across a wide range of markets,
Initially, sports and finance are available with additional categories such as entertainment and culture expected as the offering expands.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said DraftKings chief product officer Corey Gottlieb. “We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports.
“Along with our operational footprint, marketing and analytics infrastructure and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”
Event contracts will be available across 38 states, expanding the company’s total addressable market, including sports event contracts in certain states such as California, Florida, Georgia and Texas.
DraftKings Predictions plans to connect to multiple exchanges, beginning with CME Group at launch, to give eligible customers the greatest possible depth and breadth of markets, including global benchmarks, economic indicators, and sports contracts.
This will include the planned rollout of recently acquired Railbird Technologies and its wholly owned subsidiary, Railbird Exchange, which the company said will “broaden available markets, enable product innovation, and deliver advantaged economics over time.”
Shares in DraftKings Inc (NASDAQ:DKNG) closed marginally higher at $34.19 per share in New York Thursday, and gained 1.46 per cent in pre-market to $34.69.