DraftKings (DKNG) entered the prediction markets industry on Friday with the official launch of DraftKings Predictions.
DraftKings Predictions was described as a new standalone mobile app and web product that allows eligible customers to trade on real-world outcomes across a wide range of markets, with sports and finance available initially, and additional categories such as entertainment and culture expected as the offering expands. As part of the launch, DraftKings’ wholly owned subsidiary is a CFTC-registered Introducing Broker and Member of the National Futures Association. Event contracts will be available across 38 states, expanding the company’s total addressable market, including sports event contracts in certain states such as California, Florida, Georgia, and Texas.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” noted DraftKings (DKNG) Chief Product Officer Corey Gottlieb. He said the company plans to leverage key strategic relationships like ESPN (DIS) and NBCUniversal (CMCSA) to provide an authentic, real-time product that moves at the speed of sports. “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,” he added.
Shares of DraftKings (DKNG) were up 1.2% in premarket trading.