DraftKings built its name as a sportsbook, but its newest product is not a sportsbook at all. DraftKings Predictions is a CFTC-regulated prediction market, launched in late 2025, that lets users trade event contracts on real-world outcomes instead of betting against a house. Its biggest advantage is reach, since it operates in states where DraftKings Sportsbook legally cannot.

That reach, plus the weight of the DraftKings brand, makes it one of the most significant entrants in a field led by Kalshi. Smart Bet Insider reviews prediction markets and the platforms behind them. The sections below cover what it is, how trading works, its markets, its state availability, how it compares to Kalshi, and whether it is worth using.

What DraftKings Predictions Is

DraftKings Predictions is a standalone, CFTC-regulated prediction market with its own app, kept separate from the DraftKings Sportsbook. Instead of betting against a house line, users trade contracts on outcomes that settle based on real-world events, under federal oversight rather than state gaming rules.

The platform exists thanks to an acquisition of Railbird, a CFTC-licensed exchange DraftKings bought in October 2025. It launched the product that December and later rolled out its own exchange, DKeX, built on Railbird’s technology, in mid-2026.

How Trading and Fees Work

Trading works more like an exchange than a betting slip. Each contract ties to a specific outcome and settles at a fixed value, so a position pays out in full if it resolves your way and nothing if it does not. Prices move with market activity rather than being posted and held by a bookmaker.

The cost structure differs too. Rather than charging an obvious vig on both sides of a line, DraftKings prices its margin into the spread of the contracts themselves, so the fee is embedded rather than stated. Existing DraftKings banking and account tools handle funding and withdrawals, which makes the on-ramp familiar for current customers.

The Markets

At launch, DraftKings Predictions focused on sports and finance. Sports contracts are the centerpiece, letting users trade on game and player outcomes in a format that resembles a sportsbook line but settles at a fixed value, with finance markets rounding out the menu.

DraftKings has signaled that entertainment and culture markets may follow. The DKeX launch also added parlay-style “combos,” which bundle multiple contracts into one position and deliberately echo the same-game parlays that made the DraftKings Sportsbook so popular.

States and Availability

Reach is where the product separates itself. It launched across 38 states, broader than the roughly 30 where DraftKings Sportsbook operates, with eligibility set by state of residence rather than physical location.

The telling detail is that sports contracts reach states like California, Texas, Florida, and Georgia, none of which have legal sports betting. That is the whole strategic point. Sports contracts sit in a smaller subset of states than the overall footprint, so confirm availability in the app before trading.

Volume and Momentum

The early traction has been real. DraftKings reported that its prediction markets hit a $2.3 billion annualized trading-volume run rate by April, disclosed alongside its first-quarter earnings, while customer acquisition costs fell sharply as it leaned on its existing base.

The DKeX rollout in mid-2026 was the bigger structural step, moving DraftKings off reliance on third-party exchanges and onto its own federally registered venue. That shift gave the company more control over pricing and markets and cleared the way for the parlay combos that differentiate its product.

How It Compares to Kalshi

Both platforms are CFTC-regulated, but they serve different needs. DraftKings runs its markets through the Railbird-derived DKeX exchange, a newer operation, while Kalshi has been a designated contract market since 2020, lists sports contracts in nearly all 50 states, and carries deeper liquidity as the first mover.

Kalshi also spans a wider range, including politics, economics, and culture, whereas DraftKings sticks to sports and finance and skips election contracts. DraftKings counters with its brand, its existing customer base, integrated banking, and parlay combos, making it the more familiar on-ramp for sports bettors even as Kalshi stays the broader platform.

Is DraftKings Predictions Worth Using?

For DraftKings customers and sports traders in states without legal sportsbooks, it is a genuinely useful product, delivering regulated sports trading in places a sportsbook cannot reach, through a familiar app with banking already connected. For a Californian or Texan who has never had legal mobile betting, that access alone matters.

It is a weaker fit for anyone wanting markets beyond sports and finance, where Kalshi offers politics, culture, and sports in more states. As a newer entrant, its liquidity is still building, so traders after breadth or the tightest pricing may prefer the incumbent.

Who It’s For

DraftKings Predictions suits sports-focused users who value the DraftKings ecosystem or live where its sportsbook cannot operate. For those who want the widest markets and deepest liquidity, Kalshi still holds the edge, so the choice comes down to what you want to trade and where you live.

Smart Bet Insider reviews prediction markets and platforms as the field grows more crowded. Confirm which contracts are available in your state before trading, and treat prediction markets as speculative rather than a sure thing. None of this is financial advice, and anyone trading should be of eligible age and stay within a budget they can afford to lose.

Gambling can be a sensitive subject, and if it is becoming a problem for you or someone you know, please reach out to support resources.

Frequently Asked Questions

What is DraftKings Predictions?

DraftKings Predictions is a standalone, CFTC-regulated prediction market app, separate from the DraftKings Sportsbook, that lets users trade event contracts on real-world outcomes. DraftKings built it after acquiring the licensed exchange Railbird in October 2025 and launched it that December. It now runs on the company’s own exchange, DKeX.

What markets does DraftKings Predictions offer?

At launch, DraftKings Predictions offers sports and finance event contracts, with entertainment and culture categories signaled for the future. Sports contracts are the primary focus, and the platform has added parlay-style “combos” that bundle multiple contracts. It does not offer election or political markets.

What states is DraftKings Predictions available in?

DraftKings Predictions launched in 38 states, broader than the roughly 30 where DraftKings Sportsbook operates, based on a user’s state of residence. Sports contracts are available in a smaller set of states, including California, Texas, Florida, and Georgia, which lack legal sports betting. Availability can change, so confirm it in the app.

How is DraftKings Predictions different from Kalshi?

Both are CFTC-regulated, but Kalshi lists sports contracts in nearly all 50 states and offers broader categories like politics and culture with deeper liquidity. DraftKings focuses on sports and finance, offers sports in fewer states, and leans on its brand, banking integration, and parlay combos. Kalshi is broader; DraftKings is more sports-centric.

Is DraftKings Predictions worth using?

It is worth it for DraftKings users and for sports traders in states without legal sportsbooks, since it provides regulated sports trading in a familiar app. It is less compelling for those wanting non-sports markets or the widest state coverage, where Kalshi leads. As a newer platform, its liquidity is still developing.