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Draftkings is going all-in on prediction markets by introducing a soon-to-be-released "super app" that combines all its product offerings. They include the sportsbook, lotteries, casinos (where applicable) and prediction markets. The latter is expected to be available in most U.S. states.
The move comes as DraftKings and some of its competitors are looking to enter the lucrative prediction market space, a move that is drawing the ire of some state regulators.
For now at least, DraftKings expects to offer the so-called "super app" in 38 U.S. states.
One state they won't be is Nevada. The Nevada Gaming Control Board warned operators that offering sports event contracts could violate state gaming rules.
Both DraftKings and FanDuel withdrew their Nevada licensing efforts late last year rather than clash with regulators while pursuing prediction markets elsewhere.
Other states where DraftKings "super app" will not be available, for now at least, include:
- Arizona
- Arkansas
- Connecticut
- Illinois
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Nevada
- Ohio
The Wall Street Journal noted that DraftKings’ strategy…is to copy the formula it used to dominate online sports betting. The company alternates with FanDuel in the number one position for market share of regulated sports betting in the U.S..
“Predictions is the most compelling opportunity we’ve seen since PASPA," DraftKings CEO Jason Robins told the Wall Street Journal.
Robins framed prediction markets as potentially the company’s next major growth category after the U.S. sports-betting legalization wave.
With prediction markets federally regulated by the Commodity Futures Trading Commission (CFTC), DraftKings sees them as a way to reach states where sportsbooks remain illegal.
While the current administration is supportive of the sector, future administrations may not be. U.S. President Donald Trump's son, Don Jr., acts as a strategic advisor for Kalshi and an advisory board member with Polymarket.
- Chris Costigan, Gambling911.com Publisher
