Sports Predictions Coming To DraftKings, But Not Everywhere: Here's Why
If you can’t beat ‘em, join ‘em. And then beat them. That sums up DraftKings strategy when it comes to predictions markets. DraftKings Predictions stands poised to launch the next few months, DraftKings CEO Jason Robbins said during an earnings call on Friday.
“We will pursue this opportunity, we will compete, and we will win,” Robins said.
Don’t expect a nation-wide launch for DraftKings Predictions when it comes sports-related trades. DraftKings must balance any desire to go “all-in” on prediction markerts in all 50 staes, with the concerns, legal actions, and outright threats made by regulators in states where it’s currently licensed.
DraftKings purchased RailBird on October 21. That news dominated the gaming news cycle for about 24 hours before it was obliterated by news of the NBA gambling scandal involving Terry Rozier, Damon Jones and Chauncey Billups.
In September, FanDuel announced a partnership with CME to build its own predictions market site.
The topic of prediction markets has captured most of the real estate in the sports betting space since Kalshi, Polymarket, Robinhood and other prediction markets were approved to take sports related trades earlier this year.
And until about 2 months ago, any discussion of “prediction markets” among sports betting operators was taboo. Entering 2026, the only thing preventing prediction markets from overtaking the sports betting space – at least in terms of chatter – are the courts.
Prediction Markets = ‘New Customer Base, Revenue Stream’
DraftKings and FanDuel believe they can compete with the Kalshis and Polymarkets of the world because they have liquidity and a deep existing customer base (through DFS in states where they are not licensed sports betting operators).
Both operators have made it clear in public and private they have no desire to offer sports-related trades in states in which they current operate a sportsbook.
In the DraftKings earnings call Friday, Robins specifically cited California and Texas as fertile ground for DraftKings Predictions' sports-related trades. The coming launch of DraftKings Predictions offers the company a "significant incremental opportunity," he said.
"We will be thoughtful in how we launch DraftKings Predictions and do so in a way that is respectful of other stake holders – we plan to focus on states where we do not offer sportsbook, which is where we believe the vast majority of the financial opportunity exists," Robbins in a statement reiterated during Friday's earnings call.
Those other "stake holders" include both states where DraftKings current operates and the professional leagues like the NBA, NFL, and MLB with which the site has partnered. Both MLB and NBA are on the record as being opposed to prediction markets taking sports-related trades. They've voiced concerns over customer protection and integrity issues.
The NHL announced a partnership with Kalshi in October. Representatives from the NBA and MLB told bookies.com that their leagues have not changed their stance following that move.
Promo Code: BOOKIES20X
Predictions Markets Legal In All 50 States, But . . .
Sports betting remains illegal in California, Texas, Georgia and unavailable to roughly 48% of the U.S. population. Florida, with a population of 21 million, remains the most populous state with sports betting. But Sports betting in the Sunshine State, thanks to a gaming compact, has been monopolized by the Seminole Tribe through its Hard Rock Bet app.
Because they fall under the federal government, prediction markets like Kalshi and the soon-to-launch DraftKings Predictions remain legal in all 50 states. When DraftKings bought RailBrd, its announcement specifically excluded sports-related trades.
Now, it’s clear DraftKings wants to use those sports-related trades to expand its footprint in the states without online regulated sports betting and/or where it does not currently operate.
Regulators in several states, including Michigan and Arizona, have issued public statements saying that any operator licensed in their jurisdiction (including both DraftKings and FanDuel) could see their licenses put in jeopardy if they engage in sports-related prediction trades in any state. Other states, including Massachusetts (where DraftKings is based), remain aware of DraftKings’ plans but have yet to take public position on it.
Kalshi received cease-and-desist orders from Arizona, Illinois, Montana, and Ohio. It remains embroiled in ongoing litigation against New Jersey in the U.S. Court of Appeals for the Third Circuit. And it remains entangled in litigation with regulators in Maryland and Nevada.
Prediction Markets As Leverage For iGaming?
Robins Friday said he hopes the company’s move into predictions could prod legislatures to move closer toward “reasonable” sports wagering and iGaming (or online casino) legalization, regulation and taxation. No states legalized iGaming or sports betting in 2025, despite nearly a dozen tries nationwide. Missouri launches sports betting at 12 a.m. on Dec. 1. But that came because of an ballot initative that passed in 2024.
Attempts to legalize iGaming failed in Maryland, Virginia, Massachusetts, New York, and Illinois. Expect another push across each state in 2026, especially as state budgets continue to feel the pinch from cutbacks in federal spending.
Robins intimated that prediction markets could offer DraftKings it a greater opportunity than traditional sports betting and/or the lack of iGaming. Even in states where it currently operates.
Robins briefly discussed DraftKings' partnership with ESPN. The deal, announced Tuesday, had been in the works for several months. He did not offer any financial teams on the deal. The two companies paired together in the past.
10 Best Texas Online Casinos & Bonuses For November 2025 
Online Casinos That Accept Gift Cards & Prepaid Cards In The USA November 2025 
Safest Online Casinos in the US November 2025: Best Secure Casino Sites 
Fanatics Vermont Promo Code: Up to $2,000 FanCash For NBA, CFB & More 
Caesars Sportsbook Live Streaming: Watch CFB & SNF On Caesars App 
BetFred Ohio Promo Code: Get $1,111 In Bonuses
Comments