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 give attention to prediction markets shifting ahead clear in a letter to its shareholders, revealed 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 devoted app, DraftKings has now confirmed plans to launch market-making as “a core a part of the shopper expertise.” Meaning it’s going to supply each purchase (bid) and promote (ask) costs for occasion contracts, very similar to Kalshi and Polymarket.
“We’ve got been constructing DraftKings for greater than 14 years,” reads the letter. “When a brand new development lane opens, we transfer quick and execute at scale. Predictions is essentially the most thrilling new development alternative we now have seen since PASPA was struck down in 2018. Early alerts are sturdy.”
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 3 times its prior document for every day buying and selling quantity.
Subsequent steps for DraftKings
Afterward within the shareholders letter, DraftKings confirmed it will be launching market-making in an effort to proceed its development within the predictions market house.
“Contract listings, charges, market construction, and distribution matter, however tight two-way markets with depth are what appeal to contributors,” 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 chances exceptionally nicely and have the infrastructure to supply liquidity throughout a broad spectrum of contracts.”
The objective is to create two income streams for DraftKings within the predictions market house: 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 change 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.
Featured picture: DraftKings
