CFTC-regulated prediction market exchange offering binary event contracts settled in US dollars
KYC requiredPolitics · Sports +4OtherAvailable in the US
DraftKings Predictions
CFTC-regulated prediction market operated by DraftKings via its proprietary exchange DKeX
3.9/ 5
Our score
Good
Market types
SportsPoliticsEconomics
Settles in
USD
Trading fees
$0.0000804 to $0.02 per contract
Available in the US
Yes
Regulated venue
Yes
KYC required
Yes
What is DraftKings Predictions?
DraftKings Predictions is a centralized binary event contract platform launched in December 2025 by DraftKings Inc. The venue allows users to buy and sell contracts settled in US dollars on events across politics, economics, and sports, with contracts settling to either $1 or $0 based on verified real-world outcomes.
Corporate structure and leadership
The service is operated by GUS III LLC, an Introducing Broker doing business as DraftKings Predictions. Parent company DraftKings Inc. is based in Boston, Massachusetts, and was founded in 2012 by Jason Robins (CEO and Board Chairman), Matt Kalish (President, North America), and Paul Liberman (President, Global Technology and Product). In October 2025, DraftKings expanded its financial trading infrastructure by acquiring Railbird Technologies and its subsidiary Railbird Exchange LLC, a Commodity Futures Trading Commission (CFTC) designated contract market.
Trading mechanics and custody
DraftKings Predictions operates without decentralized oracles or public blockchains. Orders clear through designated contract markets such as CME Group and DraftKings' proprietary exchange, DKeX. Customer funds are held by Wedbush Securities, a registered futures commission merchant and broker-dealer. This arrangement keeps trading balances segregated from DraftKings' general corporate treasury.
Trading fees and market structure
Contract matching on DKeX follows an exchange fee model based on a 22-step price curve. Trading costs range from $0.0000804 up to a flat $0.02 per contract for positions priced between $0.30 and $0.94. Contracts settle in US dollars, with winning positions paying out $1.00 upon verified settlement.
Geographic availability and compliance
The platform is accessible exclusively to verified US residents who complete standard identity verification (KYC). Macroeconomic and political contracts are available in 48 US states, while sports event contracts face state-level restrictions and operate in 18 states. Users must pass identity and location checks before placing trades.
Regulatory track record and trade-offs
DraftKings launched Predictions in December 2025, initially routing event contracts to CME Group before deploying its own DKeX exchange on June 26, 2026. Because the venue relies on traditional brokerage clearing instead of smart contracts, traders face counterparty exposure to regulated clearing brokers rather than smart contract failure risks. Sports contracts remain unavailable in most states due to local gaming laws, and access requires full disclosure of personal identifying details.
Founders
Jason RobinsCEO & Board Chairman (Parent Company)
Co-founded DraftKings in 2012 with a background in analytics and technology.
Matt KalishPresident, North America & Director (Parent Company)
Co-founded DraftKings in 2012 after working at Vistaprint.
Paul LibermanPresident, Global Technology & Product (Parent Company)
Co-founded DraftKings in 2012.
Best for:US residents trading political contractsMacroeconomic outcome event tradersBettors seeking CFTC-regulated venues
Pros and cons
Pros
- Operates under CFTC regulation as a registered Introducing Broker
- Customer balances sit with Wedbush Securities rather than unsegregated company accounts
- Low per-contract trading fee capped at $0.02 on the DKeX exchange
- Politics and economics contracts are accessible across 48 US states
Cons
- Sports contracts are restricted to 18 US states
- Unavailable to international traders outside the United States
- Requires mandatory identity verification and financial KYC checks
- Does not support cryptocurrency deposits or onchain settlement
Our review
3.9/5
Good
DraftKings Predictions offers fully CFTC-regulated binary event trading backed by an established public company, but state-level sports restrictions and non-crypto fiat settlement limit its reach.
DraftKings Predictions brings event contracts to retail US traders within an established federal regulatory framework. Operated by GUS III LLC, an Introducing Broker under DraftKings Inc., the platform routes binary contracts settling at $1 or $0. In October 2025, DraftKings acquired Railbird Technologies and its subsidiary Railbird Exchange LLC, a CFTC-regulated Designated Contract Market. That purchase enabled the rollout of DKeX, the company's proprietary contract market, in June 2026 after initially routing customer orders through CME Group.
Trading runs under standard financial clearing rather than decentralized or blockchain-based infrastructure. Orders execute through Wedbush Securities, a registered futures commission merchant, meaning customer cash sits segregated with a regulated broker-dealer instead of inside a web3 smart contract or non-custodial wallet. While this structure protects account holders from smart-contract exploit risks, it requires full identity verification and operates entirely in US dollars rather than cryptocurrencies.
Cost structures follow an exchange schedule rather than liquidity-pool spreads. On DKeX, trading fees apply on a 22-step curve per contract, scaling from $0.0000804 up to a flat cap of $0.02 for contracts priced between $0.30 and $0.94. Markets cover politics, macroeconomics, and sports, though state laws create uneven geographic availability. Macro and political contracts are accessible across 48 US states, but sports event contracts face stricter domestic boundaries and are limited to 18 states.
DraftKings Predictions suits American traders seeking a compliant, CFTC-regulated venue for hedging political and economic events with standard domestic banking. Traders who prefer on-chain stablecoin settlement, global sports coverage without state-level geolocation walls, or permissionless access will need to use offshore or decentralized prediction markets instead.
Sources (1)
Specs
| Market types | Sports, Politics, Economics · unverified |
|---|---|
| Settles in | USD · unverified |
| Trading fees | $0.0000804 to $0.02 per contract · unverified |
| Resolution source | Centralized exchange and clearinghouse settlement · unverified |
| Available in the US | Yes · unverified |
| KYC required | Yes · unverified |
| Regulated venue | Yes · unverified |
| Market topics | sports, politics, macroeconomics · unverified |
Not disclosed by the provider: Chains, Mobile app, Liquidity rewards.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Binary event contracts
Trades settle in US dollars at either $1.00 for the winning outcome or $0.00 for the losing outcome.
DKeX execution
Matches orders on DraftKings' proprietary CFTC-regulated designated contract market exchange launched in June 2026.
Segregated broker custody
Customer funds are deposited and cleared through Wedbush Securities, a registered futures commission merchant.
Tiered exchange fees
Applies a 22-step price curve from $0.0000804 to $0.02 per contract based on pricing.
Cross-market coverage
Offers event contracts covering national politics, macroeconomic indicators, and professional sports.
Inside DraftKings Predictions
DraftKings Predictions
The primary retail interface operated by GUS III LLC that allows verified users to buy and sell binary event contracts on politics, macroeconomics, and sports.
DKeX
DraftKings' proprietary Designated Contract Market exchange, created following the acquisition of Railbird Exchange LLC, that lists and matches trades under CFTC oversight.
What users say about DraftKings Predictions
Reviews praise the simple navigation and daily promotional bonuses, but frequent complaints highlight locked accounts, sudden restrictions, and missed or unissued promotional credits.
In their own words
“Deceptive Marketing Practices A promotion was advertised for NBA Opening Day stating that $1 per made 3 was going to be issued as a promotional credit. This credit was not issued as I opted in to all eligible promotions. Will never be using this application again.”
“TERRIBLE APP They locked my account and have said they’ll fix it but it has been almost a month and it is still LOCKED”
“Best prediction market APP They give daily promos win or lost and the app is simple to use! You guys nailed it”
“They lock your prediction Whether you are up or down on a prediction (usually when you are down), you can’t cash out. Kalshi lets you cash out at 1%, 2%, 5%. This isn’t a true prediction market. I should be able to cash out when the odds went from 9% to 23% or vice versa.”
“Best!! Draftkings by miles is the best sportsbook, and Ive used alot of them. The app is very nice, withdrawal speeds are lighting fast, support amazing and they have literally everything you can think of to bet on”
Based on 47 App Store reviews, 100 Reddit posts and comments from the last 12 months, checked Oct 23, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used DraftKings Predictions? Share your experience below.
FAQ
Who founded DraftKings Predictions?
DraftKings Predictions was launched in 2025 by DraftKings Inc., which was co-founded in 2012 by Jason Robins, Matt Kalish, and Paul Liberman. The prediction market business operates through subsidiary GUS III LLC.
What fees does DraftKings Predictions charge?
Exchange fees on its DKeX market follow a 22-step price schedule per contract, ranging from $0.0000804 up to a flat $0.02 fee on contracts priced between $0.30 and $0.94.
Is DraftKings Predictions available in the US?
Yes, DraftKings Predictions is legal and regulated in the United States. Macroeconomic and political contracts are available in 48 states, while sports contracts are limited to 18 states.
Where are customer funds held on DraftKings Predictions?
Customer funds are held with Wedbush Securities, a regulated futures commission merchant and broker-dealer, rather than directly on a blockchain or on DraftKings balance sheets.
Does DraftKings Predictions use cryptocurrency or have a token?
No, DraftKings Predictions does not operate on a blockchain, settle in crypto, or issue any token. All event contracts trade and settle in US dollars.
What happens when an event contract resolves on DraftKings Predictions?
Every binary event contract settles to either $1 for a winning outcome or $0 for a losing outcome according to official Designated Contract Market rules.
Alternatives to DraftKings Predictions
CFTC-regulated prediction market exchange for trading sports, politics, and macro event contracts
KYC requiredPolitics · Sports +2OtherAvailable in the US
Prediction market on Polygon, founded in 2020 and backed by Founders Fund
Politics · Sports +3PolygonUMA Optimistic Oracle
CFTC-regulated prediction market backed by Crypto.com trading sports, politics, and culture
KYC requiredSports · Politics +2Available in the USRegulated venue
BNB Chain prediction market with yield on open positions and $1.8B+ cumulative volume
Politics · Sports +1BNB Chain · OtherUSDT and USDC
Base prediction market for short-dated crypto, sports, and macro contracts settled in USDC
Crypto · Sports +1BaseUSDC