DraftKings is increasing past sports activities betting into the realm of prediction markets, laying the groundwork for future crypto-linked contracts as regulated occasion buying and selling features momentum in the US.
As Bloomberg reported, the corporate introduced on Friday that it has launched the DraftKings Predictions app, which permits customers to commerce contracts on sports activities and monetary outcomes. At launch, the app is out there in 38 states, with sports-related buying and selling permitted in 17 of them.
DraftKings finally plans to develop its prediction market choices past sports activities and finance to incorporate contracts linked to crypto, leisure and cultural occasions, in keeping with Bloomberg.
DraftKings’ push into prediction markets is underpinned by regulated derivatives infrastructure linked to CME Group–type market requirements.
The corporate mentioned buying and selling might be carried out by means of Railbird Change, a derivatives venue it acquired and which is registered with the US Commodity Futures Buying and selling Fee, permitting DraftKings to supply event-based contracts inside a longtime regulatory framework.
As a publicly traded US-based sports activities betting and leisure firm, DraftKings brings elevated visibility and mainstream publicity to prediction markets and probably crypto-linked contracts as regulated occasion buying and selling features traction in the US.
In early November, DraftKings reported third-quarter income of $1.14 billion, up 4% 12 months over 12 months, alongside an adjusted lack of $127 million. The corporate mentioned it expects to generate as much as $6.1 billion in income this 12 months, roughly triple the quantity it generated in 2022.
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From Polymarket to Wall Road: Prediction markets go mainstream
Whereas DraftKings’ prediction market providing shouldn’t be constructed on blockchain or decentralized know-how, the broader sector has gained momentum in recent times largely as a result of crypto-native platforms that redefined how prediction markets function.
Probably the most distinguished instance is Polymarket, which introduced prediction markets onchain by utilizing crypto rails to allow international participation and near-instant settlement.
The platform helped popularize prediction markets amongst crypto-native customers, significantly throughout main political occasions and most notably the 2024 US presidential election. Its rise has coincided with rising curiosity in different event-based buying and selling venues, together with Kalshi, a US-regulated prediction market working below the Commodity Futures Buying and selling Fee (CFTC).
Past consumer-facing platforms, crypto-focused monetary infrastructure suppliers are additionally increasing into the house. Bitnomial Clearinghouse, a derivatives clearing group regulated by the CFTC, has signaled plans to assist prediction markets tied to cryptocurrency and macroeconomic outcomes.
Crypto-native exchanges are additionally broadening their product suites to incorporate prediction-style choices. Coinbase lately introduced plans to combine inventory buying and selling and prediction markets into its long-term imaginative and prescient of turning into an “every thing app.”
In the meantime, the Winklevoss-led Gemini cryptocurrency change has launched prediction markets within the US, having secured the required regulatory approvals.
Associated: Phantom faucets Kalshi to supply regulated prediction markets in pockets
