Platform · Event Contracts
DraftKings Predictions
DraftKings' CFTC-regulated event-contracts app · launched Dec 2025 fronting CME, added 6-leg parlay-style Combos May 2026, $2.3B+ annualized volume.
- Mechanism
- Event Contracts
- Status
- Live (38 states)
- Founded
- 2025
- Market types
- Binary · Parlay/Combo
- Audience
- Retail · Sports · Generalist
- Website
- predictions.draftkings.com
Pricing mechanism
Centralized matching
Settlement
CFTC-clearinghouse
Strengths
- Distribution into 3M+ DraftKings sportsbook MAU
- CFTC cover into ~20 non-sportsbook states
- Acquired Railbird ($50M + up to $200M) · own venue coming
- Combos replicate sportsbook's highest-margin product
- $2.3B annualized in 5 months
Weaknesses
- Binary-only (Combos are still parlays of binaries)
- State-AG litigation tail risk
- Cannibalization risk vs own sportsbook
- Combos depends on Crypto.com Derivatives
- Flat-cent fee schedule expensive in % on cheap legs
About this mechanism
Binary outcome derivatives traded on CFTC-designated contract markets, USD-settled. Different regulatory and distribution lane from onchain PMs.