DraftKings is no longer competing only with traditional sportsbooks. Its Predictions product puts the company into a rapidly expanding prediction-market category that is drawing attention during the 2026 NFL season.
What changed in 2026?
DraftKings said in March that Predictions could expand its reach to nearly the entire U.S. population because sports event contracts can operate in states where regulated online sports wagering is not available. The company also outlined plans for a broader Sports & Casino super-app strategy.
Prediction markets are growing around sports
Barron’s reported that prediction markets recorded at least $5.83 billion in trading volume during the opening weekend of the 2026 NFL season, citing Aldrin Research. Sports and combination trading accounted for 91% of the reported activity. DraftKings was also reported to have doubled its weekly volume for two consecutive weeks.
Why Kalshi matters
Kalshi remains a major competitor in the category, but its legal position continues to face challenges. Reuters reported that a federal appeals court on September 16 blocked Kalshi from offering event contracts on certain Native American lands in California while litigation continues.
Sportsbook versus prediction contract
A traditional sportsbook generally offers wagers under state gambling licenses. Prediction-market contracts are structured as financial or event contracts and operate under a different regulatory framework. The distinction is central to the current legal debate and varies by product and jurisdiction.
Why DraftKings is expanding beyond the sportsbook
The move gives DraftKings additional ways to reach customers and participate in markets where conventional online sportsbooks may face state-by-state restrictions. It also puts the company directly into competition with prediction-market operators during a period of unusually high sports trading activity.
Related: NFL Week 2 odds · responsible engagement · DraftKings nationwide strategy.
FAQ
Is DraftKings Predictions the same as Sportsbook?
No. They are different products with different structures and regulatory considerations.
Why are prediction markets important to DraftKings?
DraftKings has identified Predictions as a way to expand its addressable market beyond states with traditional online sports wagering.
Sources: DraftKings; Barron’s; Reuters.
