DraftKings Predictions can now handle customer orders and funds directly after securing registration as a Futures Commission Merchant with the National Futures Association. The approval gives DraftKings more control over its federally regulated prediction market operation.
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FCM registration could improve DraftKings prediction market margins by removing fees previously paid to third-party brokers. It also gives the company direct control over customer accounts, order handling and funds used to support trades.
“As always, DraftKings remains focused on operating responsibly and in compliance with applicable regulatory requirements,” DraftKings said on X.
A Futures Commission Merchant acts as the customer-facing link to a Designated Contract Market. The FCM receives orders and customer funds, while the exchange processes and matches contracts under Commodity Futures Trading Commission oversight.
DraftKings Predictions relied on CME Group when the product launched in December 2025. DraftKings later used technology from Railbird to create DKeX, its own CFTC-regulated exchange, on June 26.
The new setup means DraftKings can control both key parts of the transaction. DraftKings Predictions manages the customer relationship, while DKeX operates the exchange infrastructure.
DraftKings has also placed DKeX inside the DraftKings Sports & Casino app. The wider product plan combines sports betting, online casino games, lottery services and prediction markets in one app, while daily fantasy sports remains separate.
“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,” DraftKings CEO and cofounder Jason Robins said.
“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.”
Trading activity has grown quickly. DraftKings reported $3.1 billion in annualized prediction market volume for May, up 34% from April. Volume then reached about $11.3 billion on an annualized basis during the week ending June 21 as World Cup trading increased activity.
Federally regulated event contracts also give companies such as DraftKings access to customers beyond the traditional state sports betting model. However, federal agencies, state regulators and gambling groups continue to disagree over where sports event contracts fit within US law.