DraftKings Debuts Predictions App, Entering Prediction Markets

Rhea-AI Summary

DraftKings (NASDAQ: DKNG) on Dec 19, 2025 launched DraftKings Predictions, a standalone mobile and web app entering prediction markets under CFTC oversight. The product lets eligible U.S. customers trade event contracts across sports and finance initially, with entertainment and culture planned later. Event contracts will be available across 38 states and DraftKings Predictions will connect to multiple exchanges, beginning with CME Group at launch. The company plans a phased rollout that includes integration of recently acquired Railbird Technologies and highlights a Responsible Trading program, deposit limits, self-exclusion tools, and educational resources. Launch promotions include a $1 million prize opportunity and up to a $25 trade bonus for first trades where sports event contracts are offered.

Positive

• Event contracts available across 38 states
• Connected to CME Group at launch to access global benchmarks
• DraftKings Predictions registered as a CFTC Introducing Broker
• Planned integration of Railbird Technologies to broaden markets

Negative

• Service limited to eligible U.S. residents and a phased rollout
• Sports event contracts available only in certain states (e.g., CA, FL, GA, TX)

Key Figures

States with event contracts 38 states Availability of DraftKings Predictions event contracts at launch

Launch promotion prize $1 million Chance to win via DraftKings Predictions launch promotion

Trade bonus $25 Up to $25 trade bonus on first sports event contract trade in eligible states

Market Reality Check

$34.21 Last Close

Volume Volume 9,209,231 is below the 20-day average of 12,205,841, suggesting no outsized positioning ahead of the launch. normal

Technical Shares at $34.19 are trading below the 200-day MA of $37.86 and 36.22% under the 52-week high of $53.61.

Peers on Argus 1 Up

Peers show mixed moves, with SGHC +1.79% and RSI +1.37% up while LNW -4.2% and CHDN -0.51% are down, indicating stock-specific rather than broad gambling-sector momentum.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 25	Product localization	Positive	+7.6%	Launch of Spanish-language experience across sportsbook and casino app.
Nov 24	Market expansion	Positive	-1.8%	Approval and upcoming launch of mobile sports wagering in Missouri.
Nov 18	Management recognition	Positive	+1.9%	CEO receiving 2025 C‑Suite Executive of the Year industry award.
Nov 06	Earnings and guidance	Positive	+0.2%	Q3 2025 revenue growth with raised full-year revenue and EBITDA guidance.
Oct 28	Board change	Positive	-1.6%	Appointment of independent director with casino and leisure experience.

Pattern Detected

Recent product and market-expansion news often saw positive or modestly positive price reactions, while some operational or governance items showed mild divergences.

Recent Company History

Over the last few months, DraftKings has focused on geographic expansion, product innovation, and governance. A Spanish-language app experience and Missouri mobile wagering launch in November 2025 highlighted continued market reach efforts. Q3 2025 results showed revenue growth and higher guidance, while an additional director joined the Board in October 2025. Today’s launch of a CFTC‑regulated predictions app fits the pattern of broadening its product ecosystem and reinforcing regulated, responsible engagement with its platforms.

Market Pulse Summary

This announcement highlights DraftKings’ push into CFTC-regulated prediction markets via a standalone Predictions app that offers event contracts in 38 states at launch. The move broadens exposure beyond traditional sports betting into sports and financial outcomes, supported by existing media partnerships and responsible trading tools. In context with recent geographic and product expansion, investors may watch adoption rates, regulatory developments, and promotional efficiency around the $1 million launch campaign and trade bonuses.

Key Terms

prediction markets financial

"formally entering prediction markets under the oversight of the U.S."

Prediction markets are exchanges where people buy and sell contracts that pay out based on the outcome of a future event, effectively turning collective beliefs into a price that reflects the market’s estimated probability. Like a sports betting line or a crowd-sourced weather forecast, they aggregate diverse information and sentiment into a single, continuously updated signal that investors can use to gauge market expectations, inform timing, assess risk, or construct hedges.

U.S. Commodity Futures Trading Commission (CFTC) regulatory

"under the oversight of the U.S. Commodity Futures Trading Commission (CFTC)."

An independent U.S. federal agency that oversees trading in futures, options and swap contracts — essentially the referee and rulebook for major derivatives markets. It works to prevent fraud and market manipulation, enforce trading rules, and set standards like margin and reporting requirements. Investors care because its rules and enforcement affect market fairness, liquidity, costs and risk, so CFTC decisions can change how easy, expensive or risky it is to trade certain financial contracts.

event contracts financial

"allows eligible customers to trade on real-world outcomes across a wide range of markets"

Contracts whose payment or settlement depends solely on whether a specific, predefined event happens or not — for example a drug approval, a corporate takeover, a loan default, or a weather disaster. Think of them like a focused bet or insurance policy: investors can use them to take a targeted position, hedge exposure, or speculate on an outcome without owning the underlying company, and their results can rapidly change an investor’s gains, losses and risk profile when the event occurs.

Responsible Gaming regulatory

"extended its Responsible Gaming best practices to federally regulated event"

Responsible gaming is a set of policies and tools that help prevent and address problem gambling by promoting safe play, setting limits, and offering support to customers who show signs of harm. Like seatbelts and airbags for a car, these measures reduce the chance of severe damage—protecting users, lowering legal and regulatory risk, and preserving a company’s reputation and long‑term revenue stability, which matters to investors evaluating risk and sustainability.

AI-generated analysis. Not financial advice.

New standalone mobile app applies DraftKings’ proven technology to event contracts, offering a streamlined experience and expanding the Company’s product portfolio

BOSTON, Dec. 19, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (NASDAQ: DKNG) (“DraftKings” or the “Company”) today announced the launch of DraftKings Predictions, formally entering prediction markets under the oversight of the U.S. Commodity Futures Trading Commission (CFTC). DraftKings Predictions is a new standalone mobile app and web product that allows eligible customers to trade on real-world outcomes across a wide range of markets, with sports and finance available initially, and additional categories such as entertainment and culture expected as the offering expands. The launch reinforces the same innovation, customer focus, and compliance standards that define DraftKings’ leadership in regulated digital entertainment.

“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said Corey Gottlieb, Chief Product Officer of DraftKings. “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.” 

As part of the launch, DraftKings’ wholly owned subsidiary (d/b/a DraftKings Predictions) is a CFTC-registered Introducing Broker and Member of the National Futures Association. 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 Inc. and its wholly owned subsidiary, Railbird Exchange, LLC, which will broaden available markets, enable product innovation, and deliver advantaged economics over time.

Consistent with DraftKings’ commitment to championing responsible engagement with its products, the Company has extended its Responsible Gaming best practices to federally regulated event contracts through its Responsible Trading program. It emphasizes education, awareness, and informed participation, helping customers understand how event contracts work and manage their trading activity responsibly. Customers can set deposit limits, take cool-offs or self-exclude, and access educational materials through the DraftKings Responsible Trading Center, directly in the DraftKings Predictions app or at predictions.draftkings.com.

DraftKings Predictions is now available for eligible U.S. residents and will appear across all major app stores as the rollout completes in the coming days.

To kick off the launch, customers have a chance to win $1 million through DraftKings Predictions, with multiple ways to enter. In states where sports event contracts are available, customers can also receive up to a $25 trade bonus based on their first trade.

Customers can see availability and learn more by downloading the DraftKings Predictions app for iOS or Android. 

About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media. The company is headquartered in Boston and was launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Ontario, Canada, and Puerto Rico. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports product is available in 44 states, the District of Columbia and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III Inc. (d/b/a DraftKings Predictions) also operates DraftKings Predictions, a standalone app and web product offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly.

Forward-Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” ”would,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including the expected size, geographic scope and growth of predictions markets and trader adoption, among others. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see DraftKings’ filings with the Securities and Exchange Commission. DraftKings does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact
media@draftkings.com
@DraftKingsNews

FAQ

What did DraftKings announce on Dec 19, 2025 regarding DKNG?

DraftKings launched DraftKings Predictions, a standalone app entering prediction markets under CFTC oversight.

In how many states will DraftKings Predictions event contracts be available?

Event contracts will be available across 38 states at launch.

Which exchange will DraftKings Predictions connect to at launch for DKNG customers?

DraftKings Predictions will begin by connecting to CME Group at launch.

Does DraftKings Predictions require special registration or regulatory oversight?

Yes — DraftKings Predictions operates through a CFTC-registered Introducing Broker and is a member of the National Futures Association.

What Responsible Trading tools will be available in the DraftKings Predictions app?

Customers can set deposit limits, take cool-offs or self-exclude, and access educational materials in the Responsible Trading Center.

Are there launch promotions for DraftKings Predictions (DKNG)?

Yes — customers can enter to win $1 million and may receive up to a $25 trade bonus on their first trade where sports event contracts apply.