Federally supervised structure and state-by-state market design
The product is structured through a CFTC-registered Introducing Broker and National Futures Association member that operates as a wholly owned DraftKings subsidiary, establishing a federally supervised framework for event contracts. In this configuration, an Introducing Broker is defined as a firm that solicits or accepts orders to buy or sell futures contracts on behalf of customers without itself carrying customer funds or positions, aligning the product with existing U.S. commodities regulation.
Event contracts will be available in 38 states overall, with sports event contracts specifically cleared for users in 17 states, including California, Florida, Georgia and Texas, while in the 21 states plus Washington, D.C. where DraftKings already runs a mobile sportsbook, the new product will instead offer only non-sports event contracts. This distribution design is intended to avoid overlap or conflict between the prediction product and DraftKings’ existing sportsbook operations, while still enabling coverage of real-world outcomes at scale.
At launch, DraftKings Predictions will connect to multiple exchanges starting with CME Group to give users access to contracts linked to global benchmarks, economic indicators and sports-related outcomes, establishing institutional connectivity from day one. DraftKings has also folded its recently acquired Railbird Technologies Inc. and its subsidiary Railbird Exchange, LLC, into the product roadmap, a move presented as a way to broaden the universe of available markets and accelerate product innovation across entertainment, culture and other future categories.
To drive early engagement, DraftKings has introduced a $1 million promotional pool and a trade bonus of up to $25 for first-time users in eligible states, using targeted incentives to seed liquidity and activity on the new platform. The launch effectively places a major sports-betting operator directly inside federally regulated prediction markets, combining exchange connectivity, a large existing customer base and state-specific availability with a structure anchored in CFTC and NFA oversight.