DraftKings Eyes Micro-Betting Expansion on Prediction Market Platform
DraftKings Predictions is looking to expand into micro-betting as it eyes a larger market share in the booming prediction markets industry.
Executives at DraftKings see micro-betting as the next big thing in sports prediction markets.
Paul Liberman, the company’s president of operations, recently spoke at the Milken Institute Global Conference. He highlighted the rapid emergence of various market categories, saying, “In sports, we’re gonna see faster, more dynamic micro-markets appear that don’t exist yet.”
He also made a point of saying that innovation is coming. This is evident in DraftKings' significant investment not only in micro-betting, but also in its prediction markets platform as a whole.
Infancy stage for DraftKings Predictions
While DraftKings Predictions only launched in December, the company sees the success of major prediction market giants like Kalshi and Polymarket and wants a bigger piece of the pie. It has a long way to go, as DraftKings Predictions made up less than half a percent of U.S. event contracts traded in Q1 2026.
DraftKings Predictions is available in 48 states, including 18 where DraftKings' sportsbook product is unavailable.
In early March, DraftKings launched its Super App, which lets players wager on sports, online casino games, predictions, and lotteries through a single app.
Sportsbook is still the king
In his remarks, Liberman said DraftKings Sportsbook remains the company’s main focus. He added that players still prefer betting at regulated sportsbooks in states that allow it.
The mutual data between DraftKings Predictions and the sportsbook benefits the latter. “There’s a lot of data coming out of the sports prediction markets that is helping us as a sportsbook operate,” said Liberman.
Liberman highlighted the prediction market's value, noting that it offers significant benefits, especially in states where sports betting is illegal, such as Texas and California.
'Dark trance' lawsuit
While DraftKings looks to the future with its micro-betting investment, it's currently involved in a micro-betting lawsuit over product liability. DK is one of five defendants, including FanDuel and the NFL, in the lawsuit claiming they used advanced technology, such as AI, to fuel addictive behavior.
The lawsuit argues that micro-betting is similar to rapid-fire slot mechanisms and rapid, constant feedback, which lures players into a state of dark trance. A gambling study by the National Library of Medicine said a dark trance is “a pleasurable, but maladaptive state where players become completely occupied by the game.”
More legal issues at the state level
There are several active lawsuits between the federal regulator of prediction markets, the Commodity Futures Trading Commission (CFTC), and states that want to ban them.
The micro-betting issue has also been broached at the state level. In April, a New Jersey Senate committee advanced Bill S2160, which would ban micro-betting in the Garden State. A U.S. Appeals Court ruled in favor of CFTC and Kalshi, allowing the prediction market platform to continue offering its services to New Jersey players.
