DraftKings is quickly expanding beyond traditional sports betting with its CFTC-regulated platform, DraftKings Predictions.
Launched on December 19, 2025, the platform allows users to trade event contracts on everything from sports outcomes to politics and financial markets. Early data shows strong growth, and the company is positioning Predictions as a major part of its future.
DraftKings is integrating Predictions into its Super App, which combines sportsbook, online casino/iGaming, lottery, and prediction markets. This one-stop platform strategy aims to boost user retention and cross-selling. The company views prediction markets as the "next evolution" of its business.
The platform is now giving established prediction market platforms like Polymarket and Kalshi legitimate competition. The DraftKings Predictions promo code is part of its success, driving new customers and generating a steady stream of revenue.
What Is DraftKings Predictions?
DraftKings Predictions is a CFTC-regulated prediction market platform that allows users to trade event-based contracts on sports, politics, finance, and entertainment outcomes. It functions similarly to binary options or futures-style trading, where users buy and sell contracts based on the probability of real-world events.
Key Takeaways
- DraftKings Predictions launched on December 19, 2025
- Users can trade contracts on sports, politics, finance, and more
- May 2026 volume reached $3.1 billion annualized (up 34% month-over-month)
- Integrated into DraftKings’ Super App for lower acquisition costs
- Positioned as a high-margin, long-term growth driver
Strong Growth in May 2026
DraftKings reported rapid expansion in its June 9, 2026, Form 8-K filing, signaling strong early traction.
- Annualized total volume: $3.1 billion (up 34% from April)
- Annualized consumer volume: $1.3 billion (up 24%)
- Second consecutive month of double-digit growth
This follows April’s $2.3 billion total volume, showing steady momentum as the platform scales beyond its launch phase.
Why DraftKings Predictions Is Growing Quickly
Built-In User Base Advantage
DraftKings is using its existing sportsbook and casino audience to drive adoption. By embedding Predictions directly into its main app, the company has reduced customer acquisition costs by over 80% in some cases.
CEO Jason Robins highlighted this trend:
“Customer acquisition is on fire. We’re not even in the busiest season yet.”
Super App Integration
DraftKings Predictions is part of the company’s broader “Super App,” which combines:
- Sports betting
- Online casino gaming
- Lottery products
- Prediction markets
This ecosystem increases user retention and encourages cross-platform engagement.
Investment and Expansion Plans
DraftKings plans to invest $200–300 million into Predictions in 2026. Key focus areas include:
- Market-making infrastructure
- Proprietary exchange development
- Marketing and customer acquisition
The goal is to secure a leading position in prediction markets by the end of 2026.
Robins stated:
“Predictions is rapidly developing into a massive incremental opportunity.”
DraftKings vs Competitors
The prediction market space is becoming increasingly competitive, with key players including:
- Kalshi (regulated U.S. leader)
- Polymarket (crypto-based platform)
- Robinhood Predictions
DraftKings differentiates itself through:
- A large, existing user base
- Deep sports data expertise
- Seamless product integration
Are Prediction Markets Legal in the U.S.?
Yes, prediction markets are legal in the U.S. when regulated by the Commodity Futures Trading Commission (CFTC). Platforms like DraftKings Predictions, Polymarket, and Kalshi operate under this regulatory framework, offering compliant event-based trading.
Why DraftKings Predictions Matter
Although Predictions currently contributes a small share of DraftKings’ total revenue, it represents a major long-term opportunity.
Industry trends supporting growth include:
- Expansion of regulated event contracts
- Rising demand for alternative trading formats
- Increased interest following the 2024 election cycle
Robins emphasized the broader shift:
“The momentum is here. They’re here to stay.”
FAQ
Is DraftKings Predictions the same as sports betting?
No, DraftKings Predictions is a prediction market platform where users trade contracts based on probabilities, while sports betting involves fixed odds wagers against a sportsbook.
How does DraftKings Predictions make money?
DraftKings earns revenue through trading fees, spreads, and market-making activities rather than traditional sportsbook margins.
Can you use DraftKings Predictions nationwide?
Yes, because it operates under federal CFTC regulation, it may be accessible in more states than traditional sports betting, depending on compliance rules.
Is DraftKings Predictions safe?
DraftKings Predictions operates under CFTC oversight, making it a regulated and compliant platform compared to offshore or unregulated alternatives.
DraftKings Predictions is still in its early stages, but the platform’s rapid growth and strong integration into the company’s broader ecosystem suggest significant long-term potential. As competition in the prediction market space intensifies, DraftKings’ scale, user base, and investment strategy could position it as a major player in this emerging category. If current trends continue, Predictions may evolve from a niche offering into a meaningful driver of future revenue.
