### DraftKings Expands Horizons: Launch of Prediction Markets in 38 States DraftKings has officially launched its prediction markets platform, DraftKings Predictions, in 38 states across the U.S., marking a significant expansion beyond its traditional sports betting operations. This new offering allows users to trade event-based contracts on various outcomes, including sports, finance, and political events, under the oversight of the Commodity Futures Trading Commission (CFTC). The launch is particularly notable as it enables participation in states where sports betting is not yet regulated, tapping into a growing market for alternative betting options. The platform aims to provide a structured environment for users to express their views on real-world events, emphasizing price discovery and market participation rather than traditional gambling [https://thearabianpost.com/draftkings-steps-into-regulated-prediction-markets]. ### Structure of DraftKings' Prediction Market Launch 1. **Overview of the Launch** - DraftKings Predictions is now live in 38 states, allowing users to trade contracts on various events [https://www.gamblingnews.com/news/draftkings-launches-new-predictions-app-and-enters-event-trading-market]. - The platform operates under CFTC regulations, differentiating it from state-specific sports betting laws [https://zipnews.org/draftkings-taps-cftc-framework-to-launch-predictions-marketplace-app]. 2. **Market Positioning and Strategy** - The launch positions DraftKings alongside other firms in the prediction market space, such as Kalshi and Polymarket, aiming to capture a share of the growing demand for event contracts [https://bitcoinethereumnews.com/finance/draftkings-targets-kalshi-polymarkets-lead-with-predictions-market-launch]. - DraftKings is leveraging its existing user base from daily fantasy sports and online sportsbooks to drive engagement in this new market [https://thecoinrise.com/draftkings-enters-regulated-prediction-market-with-standalone-app]. 3. **Regulatory Compliance and Challenges** - The platform is designed to comply with federal commodities law, which allows it to operate in states where sports betting is restricted [https://www.webpronews.com/draftkings-bets-big-on-prediction-markets-with-cftc-backed-app-launch]. - DraftKings has indicated that it will carefully curate its offerings to avoid potential regulatory pitfalls, especially concerning sensitive political events [https://thecoinrise.com/draftkings-enters-regulated-prediction-market-with-standalone-app]. 4. **Future Prospects and Market Dynamics** - The introduction of prediction markets could diversify DraftKings' revenue streams and mitigate seasonal fluctuations typical in sports betting [https://igaming.org/sports-news/draftkings-takes-prediction-markets-live-in-38-states]. - Analysts suggest that the dynamics of event-contract trading may align more closely with financial markets than traditional betting, potentially attracting a different demographic of users [https://www.covers.com/industry/draft-kings-predictions-launches-38-states-december-18-2025]. ### Conclusion: A Strategic Move into Prediction Markets **DraftKings' entry into the prediction markets signifies a strategic pivot that could reshape its business model.** 1. **Launch Overview**: The platform is now operational in 38 states, allowing for a diverse range of event contracts [https://www.gamblingnews.com/news/draftkings-launches-new-predictions-app-and-enters-event-trading-market]. 2. **Market Positioning**: By leveraging its existing user base and regulatory compliance, DraftKings aims to capture a significant share of the prediction market [https://thecoinrise.com/draftkings-enters-regulated-prediction-market-with-standalone-app]. 3. **Regulatory Landscape**: The company is navigating a complex regulatory environment, ensuring compliance while expanding its offerings [https://zipnews.org/draftkings-taps-cftc-framework-to-launch-predictions-marketplace-app]. 4. **Future Outlook**: The move could enhance revenue diversification and attract new users, positioning DraftKings favorably in a competitive landscape [https://igaming.org/sports-news/draftkings-takes-prediction-markets-live-in-38-states]. This strategic expansion into prediction markets not only broadens DraftKings' portfolio but also reflects a growing trend in the gambling industry towards regulated event-based trading.