DraftKings Predictions Drives $3.1B Trading Volume, a 34% MoM Increase
The DraftKings Predictions platform is paying dividends to the U.S. online gambling giant. The operator reported $3.1 billion in trading volume on its Predictions platform, a 34% increase for May.
DratKings Predictions launched near Christmas last year in a bid to take on established giants, including Kalshi and Polymarket.
At a Glance:
- DraftKings reports 34% month-over-month increase to $3.1 billion
- Predictions offers event contracts on sports, politics, and more
- Prediction market now bundled into ‘Super App’ with casino & sportsbook
- Overall gaming revenue also up for America’s leading betting company
- DraftKings stock enjoys 9% boost following positive news
DraftKings finally reaping rewards of prediction markets
The drive in profits is helped in no small part by DraftKings Predictions’ integration into a new ‘Super App’. Customers can now access the prediction markets and DraftKings Sportsbook in one single app.
Other prediction markets, like Kalshi, offer event contracts on everything from sports to politics to entertainment.
DraftKings Predictions is focused more on sports and commodities. You can buy, sell, and trade events on the NBA Finals, FIFA World Cup winners, or the price of CME Crude Oil futures.
However, DraftKings Predictions is still federally regulated by the CFTC (Commodity Futures Trading Commission), even though it is bundled with state-licensed betting platforms. That means you can access DraftKings Predictions in U.S. states that don’t have their own sports betting legislation.
DraftKings weathers betting bonus storm
DraftKings has endured a tough year over its sports betting practices. Last year, it faced multiple class-action lawsuits over terminology surrounding “risk-free bets” on its sportsbook.
The operator was also accused in January of breaking consumer protection laws in several states where it offers sports betting. However, cases of alleged misleading promotions and responsible gambling seem to have been resolved.
There was also mixed news for DraftKings last month after the closure of its sportsbook at Wrigley Field in Chicago. Location and higher retail sports betting tax were among the reasons cited for the shutdown.
Legal battles may lie ahead
DraftKings Predictions is being rewarded for playing it safe so far. It launched in 17 states last December and offers limited-event contracts for predicting outcomes in a handful of sports. Parlays are prohibited, unlike at larger prediction markets such as Polymarket.
Plus, DraftKings Predictions has cleverly avoided states that have already antagonized the CFTC. These include Montana, Illinois, and Arizona, all of which have issued cease-and-desist letters to prediction markets this year.
Ultimately, the Supreme Court may end up ruling on whether prediction markets constitute derivatives trading platforms or sportsbooks. The decision will determine whether operators such as DraftKings, Polymarket, and Kalshi will apply for new licenses.
