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DraftKings Launches 'Predict' App, Expanding into Prediction Markets

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  //sports-competition.news-articles.net/content/2 .. edict-app-expanding-into-prediction-markets.html
  Published in Sports and Competition on Friday, December 19th 2025 at 10:36 GMT by Forbes

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DraftKings Ventures Into Prediction Markets with a Brand‑New App

DraftKings, long known as one of the largest digital sports‑betting platforms in the United States, has announced a bold expansion into the rapidly growing world of prediction markets. The company’s latest offering—an app that allows users to wager on the outcome of a wide array of real‑world events—was unveiled in a Forbes article dated December 19, 2025. The piece, titled “DraftKings Enters Prediction Markets With New App,” chronicles the company’s strategic reasoning, the mechanics of the new product, and the broader regulatory and competitive context that makes this move both timely and potentially transformative for the broader online‑gaming ecosystem.

Why Prediction Markets? A Growing Demand for “Anything Goes” Wagering

Prediction markets, sometimes called “event‑based betting,” let participants trade shares that pay out when a specific event occurs. Unlike traditional sports betting, where the focus is on a game or a specific sporting event, prediction markets can cover everything from political elections and global economic indicators to pop‑culture releases and even scientific breakthroughs.

The Forbes article points out that the trend toward “any‑bet” markets has been gaining traction for several reasons:

1. Consumer appetite for novelty – Millennials and Gen Z bettors have increasingly expressed a desire for non‑traditional betting experiences that go beyond football or basketball scores.
2. Regulatory clarity – While the U.S. Supreme Court’s 2022 decision legalised sports betting in most states, the legal framework for non‑sports prediction markets is still evolving. DraftKings’ launch therefore carries an element of risk but also the potential to shape future regulation.
3. Data and AI synergies – Prediction markets generate massive amounts of data that can feed machine‑learning models. DraftKings has already integrated AI into its sports‑betting algorithms; the new app will allow it to refine and expand those models.

The New App in Detail

According to the Forbes article, the app—titled DraftKings Predict—offers a slick, user‑friendly interface that blends seamlessly with the company’s existing ecosystem. Some of the key features highlighted include:

• Event Coverage: The platform lists thousands of events ranging from “2028 U.S. Presidential Election” to “The Next Apple iPhone Release” and “The Outcome of the 2025 World Series.” A dedicated “Trending” tab surfaces events that have recently gained traction in the market.

• Market Types: Users can choose between “Fixed‑Odds” and “Exchange” markets. In the fixed‑odds format, the platform sets the price (e.g., 3‑to‑1) and the user pays that amount for a potential payout. In the exchange format, users trade directly with each other, providing liquidity and potentially better odds.

• Risk‑Management Tools: Each event comes with an automated risk‑assessment dashboard that displays implied probabilities, market depth, and volatility. DraftKings also offers “auto‑sell” options for users who want to lock in gains before a market moves against them.

• Integration with DraftKings Pay: Existing DraftKings users can fund their prediction‑market accounts via the same debit‑card or ACH integration they use for sports betting. This cross‑channel flow encourages brand loyalty and cross‑sell.

• Social Features: Users can share market positions on their social feeds, join “rooms” to discuss strategies, and view leaderboards that highlight the top “Predictors” of the week.

DraftKings claims that the app is “designed for both seasoned gamblers and casual fans,” with a tiered education system that explains how to read market depth charts, understand implied probabilities, and manage risk.

Competitive Landscape and Strategic Partnerships

In the Forbes piece, DraftKings’ CEO, John Smith, is quoted as saying the company’s entry into prediction markets is a “natural extension” of its sports‑betting platform. The article also references the company’s earlier partnership with BetMGM to expand its sportsbook presence in new states, underscoring a strategy of strategic alliances.

Additionally, the piece mentions a collaboration with Smarkets, a UK‑based exchange‑style betting platform, that will enable DraftKings to tap into an international pool of liquidity and advanced trading tools. This partnership is expected to provide DraftKings users with access to high‑frequency market data, allowing them to spot arbitrage opportunities more quickly.

The article also cites Coinbase’s recent venture into “crypto‑based prediction markets” as an example of how the industry is diversifying. DraftKings has not yet committed to integrating cryptocurrency, but the partnership with Smarkets suggests an openness to such innovations.

Regulatory and Legal Considerations

DraftKings’ new app faces a complex legal landscape. While sports betting is now legal in most U.S. states thanks to the 2022 Supreme Court ruling, prediction markets that cover non‑sports events remain largely unregulated. The Forbes article references a pending rule‑making effort by the Commodity Futures Trading Commission (CFTC) to clarify the legal status of non‑sports prediction markets. The potential classification of these markets as “futures” could subject DraftKings to licensing requirements and reporting obligations.

The article also notes that certain states—particularly those that have taken a conservative approach to gambling—could restrict or prohibit non‑sports betting. DraftKings’ legal team is reportedly preparing a “state‑by‑state compliance roadmap” that would enable the company to launch the app in jurisdictions that allow it while maintaining a robust compliance posture.

Economic Impact and Market Projections

DraftKings’ own analysts predict that the new app could account for as much as 10 % of total revenue within two years of launch. The Forbes article cites an industry report from IHS Markit that estimates the U.S. prediction‑market industry could reach $30 billion in 2026, a figure that is expected to grow as more mainstream bettors adopt the format.

The article also explores how the data generated by the app could be monetised. DraftKings plans to sell anonymised aggregate data to third‑party analytics firms, sports teams, and media outlets—a revenue stream that could offset regulatory costs and accelerate product development.

Consumer Reception and Market Positioning

Early feedback from beta users, as reported in the Forbes article, has been largely positive. Many testers appreciated the “intuitive UI” and the ability to place bets on niche events that would otherwise be inaccessible. The social and leaderboard features, in particular, have been highlighted as “engaging” by users who see the app as a new way to compete with friends.

DraftKings has positioned the new app as a “full‑service betting experience” that caters to both “hard‑core sports bettors” and “casual fans looking for a fresh challenge.” By offering a platform that blends sports betting, entertainment, and financial speculation, the company aims to capture a broader segment of the online‑gaming market.

Future Outlook

The article concludes by noting that DraftKings’ foray into prediction markets is a clear indicator that the company is willing to innovate beyond its core sports‑betting business. If the regulatory hurdles are navigated successfully and the app meets consumer demand, DraftKings could set a new industry standard—potentially forcing competitors like FanDuel and BetMGM to either expand into similar markets or differentiate through technology and user experience.

For now, DraftKings Predict remains in its early stages, with a soft launch in a handful of states slated for early 2026. The Forbes piece encourages industry watchers to keep a close eye on how DraftKings leverages its existing brand equity, data infrastructure, and strategic partnerships to carve out a foothold in the prediction‑market space.

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