DraftKings has taken more control over its prediction market business with DKeX, a CFTC licensed exchange built into its own app. The launch gives DraftKings Predictions an internal market layer at a time when World Cup trading has lifted user activity across sports event contracts.
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DraftKings no longer needs to lean on third-party marketplaces for its prediction market exchange layer. DKeX uses technology that DraftKings developed and acquired, which can help the company cut outside exchange fees and control more of the customer experience.
That internal setup also gives DraftKings more room to adjust products, service DraftKings Predictions, and test new sports event contracts without routing core exchange activity through another provider.
“DraftKings is at its best when building innovative platforms that bring together technology, customer focus, and world-class execution to shape the future of sports engagement,” Jason Robins, CEO and co-founder of DraftKings, said in a press release. “The momentum we’ve seen on DraftKings Predictions in recent months reflects the significant progress we’ve made in delivering a more seamless and connected experience for sports fans.”
DKeX also fits the broader prediction market model. A CFTC licensed exchange operates under federal derivatives rules, while sportsbook products remain tied to state gaming licenses. That split has become important as sports event contracts draw more attention from operators, regulators, and state officials.
DraftKings did not launch DKeX in a quiet market. World Cup trading has pushed prediction markets into heavier sports fan usage, and DraftKings Predictions reported around $11.3 billion in annualized total trading volume for the week that ended June 21.
That data point gives DKeX a stronger opening case. DraftKings can now keep more of the exchange stack in house while the sports calendar delivers larger trading windows.
“The launch of DKeX and its integration into our unified app is a major step forward in delivering a best-in-class customer experience in sports nationwide,” said Jeanine Hightower-Sellitto, DraftKings senior vice president and general manager of prediction markets. “DKeX is the latest milestone in that progression and creates new opportunities to further expand the offering ahead of some of the biggest moments on the sports calendar.”