DraftKings enters prediction markets across 38 U.S. states

DraftKings has officially launched DraftKings Predictions, a standalone prediction markets platform operating under a model similar to Polymarket and Kalshi. The product is not traditional sports betting but a marketplace where users trade on the outcomes of events by buying and selling market expectations.

At launch, DraftKings Predictions offers contracts tied to sports and financial events. The format will be familiar to prediction market users: contract prices reflect the market’s implied probability of an outcome, and profits are generated through price movements rather than fixed bookmaker payouts. The company plans to expand into entertainment and cultural markets at a later stage.

The key factor behind the rollout is the legal structure of the product. Unlike traditional sports betting, DraftKings Predictions operates outside state-level sportsbook licensing, allowing the company to offer the service in states where online sports betting remains banned or heavily restricted.

As a result, DraftKings Predictions is now available in 38 U.S. states, including California, Texas, and Florida — major markets that are still closed to conventional online sportsbooks. In some states, the platform offers only sports-related markets, while in others it focuses exclusively on financial events. A total of 17 states, including Hawaii, support both formats.

In practice, DraftKings is following the path pioneered by Kalshi and Polymarket, but with a significant difference: the platform is backed by a publicly traded company with millions of existing users and a mature digital ecosystem. This positions DraftKings Predictions as a potentially mass-market entry into the U.S. prediction markets space.

Alongside the launch, DraftKings announced promotional campaigns in select states, including prize giveaways totaling up to $1 million. At the same time, SportClan has previously reported on disputes between DraftKings and players, including a high-profile case involving a denied payout of $14.2 million.