DraftKings has launched a proprietary prediction markets exchange as part of a broader 'Super App' strategy that bundles multiple betting and forecasting products into one platform. The prediction markets vertical is already tracking approximately $3.4 billion in annualized consumer volume, signaling meaningful early traction. Shares moved higher on the news as investors responded to the expanded addressable market implied by the launch.
Prediction markets represent a fast-growing, lightly regulated adjacent category to sports betting — and DraftKings entering with a proprietary exchange (rather than a third-party integration) means higher margin potential and stronger user lock-in. If the $3.4B annualized volume figure holds or grows, it materially expands the company's total addressable market beyond its traditional sportsbook and daily fantasy core. Competitors like Flutter and Penn Entertainment face new pressure to respond.
Next DraftKings earnings report (next quarterly earnings — date TBD): management will give updated volume and user metrics for the prediction markets vertical. Watch for any regulatory commentary from the CFTC, which oversees prediction markets in the US and could expand or restrict the category.
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