Constructing on its pivot into prediction markets, playing large DraftKings has confirmed it’s going to launch a market-making arm within the new sector.
DraftKings has made its deal with prediction markets transferring ahead clear in a letter to its shareholders, printed on Thursday (February 12), alongside the corporate’s quarterly report. In addition to collaborating with Crypto.com to spawn the prediction markets enterprise arm and launching a dedicated app, DraftKings has now confirmed plans to launch market-making as “a core a part of the shopper expertise.” Which means it’s going to provide each purchase (bid) and promote (ask) costs for occasion contracts, very like Kalshi and Polymarket.
“We have now been constructing DraftKings for greater than 14 years,” reads the letter. “When a brand new progress lane opens, we transfer quick and execute at scale. Predictions is probably the most thrilling new progress alternative now we have seen since PASPA was struck down in 2018. Early indicators are robust.”
The letter goes to notice that Tremendous Bowl Sunday noticed DraftKings Predictions with the second most app downloads in its class, in addition to delivering thrice its prior file for day by day buying and selling quantity.
Subsequent steps for DraftKings
In a while within the shareholders letter, DraftKings confirmed it might be launching market-making in an effort to proceed its progress within the predictions market area.
“Contract listings, charges, market construction, and distribution matter, however tight two-way markets with depth are what entice individuals,” reads the letter. “Exchanges seed liquidity by incentivizing market-makers, and DraftKings can lead market-making for sports activities contracts as a result of we mannequin sports activities possibilities exceptionally nicely and have the infrastructure to offer liquidity throughout a broad spectrum of contracts.”
The purpose is to create two income streams for DraftKings within the predictions market area: transaction charges, by way of the DraftKings Predictions app; and buying and selling economics from market-making and proprietary buying and selling, each by itself trade and presumably on different exchanges.
DraftKings’ transfer follows Nevada gaming regulators’ crackdown on prediction markets in November 2025, pulling key licenses from them, whereas the state continues to battle in court docket over whether or not sports activities occasion contracts and political prediction markets are even authorized.
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