DraftKings Predictions: How it works, available states and everything you need to know originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.
How DraftKings Predictions differs from sportsbooks
DraftKings Predictions takes the idea of prediction markets and brings it into an ecosystem many fans already know and use.
Launched in December 2025, it’s one of the first U.S. sportsbook platforms to offer a federally regulated way to buy and sell predictions on real-world events — like whether your team wins a championship or a player takes home MVP.
It works like a stock market for sports predictions. Instead of betting against DraftKings, you’re trading with other users. Prices go up or down in real time based on things like breaking news and injuries.
Because it’s built on DraftKings’ existing platform, everything feels fast and familiar. The app uses its large user base and sports partnerships to make trading predictions feel as natural as following a live game.
In this beginner’s guide, we’ll break down how it all works — what contracts are, how pricing works, how to get started and what makes DraftKings Predictions different from traditional sportsbooks.
In December 2025, DraftKings became the first U.S. sportsbook operator to also offer a prediction market platform with the launch of DraftKings Predictions. DraftKings Predictions is a federally regulated prediction market that allows users to buy and sell contracts, or shares, on the results of real-world events and outcomes, similar to how a stock exchange operates.
“We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports," said Corey Gottlieb, Chief Product Officer of DraftKings. “Along with our operational footprint, marketing and analytics infrastructure and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”
Each market asks a clear yes-or-no question tied to a specific outcome and date. For example, a market may ask whether a team will win a game on a given night or if a team will win the championship in its respective sport.
DraftKings Predictions launched in December 2025. The DraftKings company, though, was founded on Dec. 31, 2011 and launched its first daily fantasy sports (DFS) product in 2012.
The company was founded by Jason Robbins, Matthew Kalish and Paul Liberman and is headquartered in Boston, Massachusetts. The company also launched it's first sportsbook offering in the state of New Jersey in 2018 and became a publicly traded company in 2020.
DraftKings was able to leverage its existing infrastructure and user base through its other platforms to hit the ground running with DraftKings Predictions.
The DraftKings Predictions platform is available on iOS and Android apps, and there's also a web-based platform as well.
Anyone who is 18 years old or older can participate on the DraftKings Predictions platform. Identity verification is required through the Know Your Customer (KYC) process. You'll also need a U.S. bank account or other approved payment method. Unlike some other prediction markets, crypto is not required. Users must also submit their social security number for tax reporting as well as an e-mail address for verification.
DraftKings Predictions is not available in every state currently, so geolocation is also required. While the platform is federally regulated by the Commodity Futures Trading Commission (CFTC), it has avoided operating in states where there is a high level of legal pushback. Some states contend that prediction markets are too similar to sports betting and operate as an exchange to avoid state regulations.
With DraftKings Predicitons, instead of betting against a sportsbook, you're trading against other people, similar to a stock exchange.
The price you see on a prediction market isn’t set by a sportsbook. Instead, it reflects what other traders are willing to pay or sell for at that exact moment. When you buy a contract, you’re free to sell it at any time before the market closes. This is similar to a “cash out” option in sports betting, but with one major difference — on prediction markets, you always have the option to exit your position whenever you choose, not just when a sportsbook decides to offer it.
Contracts, or shares, are priced between $0.01 and $0.99, and the price reflects how likely the market thinks that particular outcome is. If the event happens (Yes), the contract pays the user $1. If the event does not happen (No), the contract pays $0. The user's profit is the difference between what you paid for the contract and the $1 payout, minus any fees.
Since DraftKings already had a sportsbook userbase to tap into, their default display mode shows the number as more traditional betting odds. But if you prefer seeing the probability percentages, you can toggle to that under settings once you're logged in.