DraftKings stock ticks higher after launching prediction markets app
Investing.com -- DraftKings Inc. (NASDAQ:DKNG) stock rose 1.4% in premarket trading Friday following the launch of its new DraftKings Predictions app, which marks the company’s formal entry into prediction markets under the oversight of the U.S. Commodity Futures Trading Commission.
The new standalone mobile app and web product allows eligible customers to trade on real-world outcomes across various markets, with sports and finance available initially. The company plans to expand into additional categories such as entertainment and culture in the future.
DraftKings’ wholly owned subsidiary is operating as a CFTC-registered Introducing Broker and Member of the National Futures Association. The event contracts will be available across 38 states, expanding the company’s total addressable market, including in key states like California, Florida, Georgia, and Texas where sports event contracts will be offered.
"DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers," said Corey Gottlieb, Chief Product Officer of DraftKings.
The company plans to connect to multiple exchanges, beginning with CME Group at launch, to provide customers with a wide range of markets. DraftKings also plans to incorporate its recently acquired Railbird Technologies Inc. and Railbird Exchange, LLC to broaden available markets and enable product innovation.
Consistent with its responsible gaming practices, DraftKings has implemented a Responsible Trading program for the new platform, allowing customers to set deposit limits, take cool-offs, or self-exclude.
To promote the launch, DraftKings is offering customers a chance to win $1 million through the new platform, with multiple ways to enter. In states where sports event contracts are available, customers can also receive up to a $25 trade bonus based on their first trade.
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