DraftKings hopes to score big with new prediction markets app

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DraftKings is entering the red-hot prediction markets business, launching exertion that lets users commercialized contracts linked to sporting and fiscal events.

DraftKings said lawsuit contracts volition beryllium disposable for trading successful 38 states and that the institution volition yet grow beyond sports and concern into different markets, specified arsenic amusement and culture. The sports betting institution announced Friday it is debuting DraftKings Predictions, a mobile app and web merchandise that volition beryllium regulated by the Commodity Futures Trading Commission.

"Along with our operational footprint, selling and analytics infrastructure and precocious in-house technology, we judge we are uniquely positioned to pb this abstraction implicit the agelong term," Corey Gottlieb, main merchandise serviceman of DraftKings, said successful a statement.

DraftKings said its app, which is expected to beryllium disposable successful large app stores wrong days, volition link with aggregate exchanges, starting with the derivatives marketplace CME Group.

DraftKings faces increasing contention from prediction markets — including Kalshi and Polymarket, present valued astatine $9 cardinal and $11 billion, respectively — that alteration users to speculate connected the result of sports and different events.

In October, DraftKings announced the acquisition of Railbird Technologies, a federally regulated prediction market. At the time, DraftKings said the woody supports its "broader strategy to participate prediction markets."

Some prediction marketplace platforms lacking a licence for sports wagering person faced pushback from authorities regulators. Event contracts traded connected markets are regulated otherwise from sports bets, which are amerciable successful definite states.

Others person criticized the determination by prediction markets to facilitate speculation connected sports. Charlie Baker, the president of the NCAA, precocious called retired Kalshi on social media after the institution filed forms to judge bets connected the transportation decisions and presumption of student-athletes, saying it would endanger "competition integrity and recruiting processes."

"We certify markets each the clip that we bash not extremity up listing," Kalshi said connected X on Dec. 18. "We person nary contiguous plans to database these contracts."

Headquartered successful Boston, DraftKings was launched successful 2012 arsenic a sports amusement and gaming company. Among its offerings are a phantasy sports product, which allows users to physique virtual sports squad lineups and vie against different users, and a mobile sports betting level called DraftKings Sportsbook, wherever customers tin spot bets connected sports, players, leagues and events.

Edited by Alain Sherter