Where Does DraftKings Stand With Prediction Markets?

• It is no secret that DraftKings has been exploring the potential entry into the predictions market
• The company filed with the National Futures Association in June, a preliminary step in receiving regulatory approval from the CFTC
• A social media user today also discovered a live predictions market URL created by DraftKings that redirected users to the DraftKings lobby

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DraftKings is currently in monitor mode as it evaluates potential next steps into the prediction markets, but the worldwide gaming company may be making some slight preparations if the time ever comes.

DraftKings leadership has made it no secret that the company is at least monitoring the prediction markets. Most sports betting and iGaming companies have done their due diligence into the space, which would allow them to offer prediction market contracts to customers throughout the entire country.

Entry into the markets would also allow companies to offer sports prediction contracts to customers in all 50 states, while sports betting is currently only legal in 38 states.

DraftKings Continuing Evaluations

DraftKings CEO Jason Robins and Co-Founder Paul Liberman, along with several other DraftKings C-suite executives, applied in June with the National Futures Association as Gus III Holdings LLC, a key preliminary step for a company hoping to receive regulatory approval from the Commodity Futures Trading Commission to be licensed as a futures and derivates markets.

Gus III Holdings LLC is currently labeled as a “pending NFA member” on its application on the NFA website. Robins and other DraftKings representatives previously filed an NFA application for Gus Holdings II LLC in June 2024 to do business as “DraftKings Predict.” However, the application was withdrawn this past March and the status for the application is now simply listed as “Not an NFA Member.”

DraftKings has shown interest in the prediction markets for several months. Robins mentioned the possibility during the company’s Q2 earnings report in August, noting DraftKings will evaluate the possibility of entering the prediction contract markets, but will remain in “monitor mode” as it moves through the year.

Companies like Kalshi and Robinhood offer sports event contracts – which closely mirror sports betting – to users throughout the country. Predictions markets may provide an intriguing way for DraftKings, and other sports betting companies, to extend its reach into every state in the country.

But being a first mover into the space? Robins said it may not be worth it during the earnings report. The company needs to consider all of its stakeholders, including state regulators and tribal partnerships, before jumping into the prediction markets, he said.

But as the company waits for its NFA application to process, it may be making other preparations to ensure it’s ready if the time ever comes to enter the prediction markets. Social media user @MikeDzikowski shared on on X this afternoon that he discovered DraftKings created a DraftKings branded prediction market URL – predictions.draftkings.com – which when clicked would redirect customers to the DraftKings lobby.

The URL is now inactive.

Looks like there is a https://t.co/IBAAyHD1FY URL available that redirects to the DK lobby, that I found using developer tools. @DKSportsbook @DraftKings @JasonDRobins @contessabrewer @ButlerBets @RLinnehanSR $DKNG @DK_Assist @stevebrubaker @BittGDCG pic.twitter.com/74ypI24J0r

— Mike Dzikowski (@MikeDzikowski) September 22, 2025

Sports Betting Dime reached out to DraftKings for comment on the creation of the URL. A DraftKings spokesperson noted the company’s previous on-the-record statement on prediction markets still stands.

“DraftKings continues to monitor events surrounding federally regulated Prediction Markets. We value our relationships with industry stakeholders and policymakers and will work collaboratively as we evaluate next steps,” the spokesperson said.

Gaming Companies Evaluating Prediction Markets

As DraftKings continues to monitor the prediction markets, other gaming companies have taken a more aggressive approach.

In August, FanDuel announced a new partnership with CME Group, a leading derivatives marketplace, to launch new products and expand access to financial markets for FanDuel customers. The companies will develop new event-based contracts with defined risks.

The products will be available on a FanDuel platform later this year. As part of the partnership, CME Group and FanDuel will form a new joint venture, under which they will operator a non-clear futures commission merchant that will provide access to these event-based contracts through FanDuel.

The new event-contracts are pending a CFTC review.

Underdog and Crypto.com, a CFTC-registered exchange and clearinghouse, announced earlier this month a new partnership that allows customers to access sports event contracts through Underdog’s platform.

The new partnership allows users to trade and purchase sports event contracts across all major sports leagues, including the NFL and college football, the first of its kind between a CFTC-registered exchange and a gaming company. Underdog is the only gaming company to offer sports betting, daily fantasy sports, and prediction markets to its users. Each of these products will now be available through the Underdog app.

PrizePicks and Fanatics Betting and Gaming also have pending NFA applications.