DraftKings Predictions: How it works, available states and everything you need to know

JUMP TO: 

• What is DraftKings Predictions?
• How DraftKings Predictions works
• Is DraftKings Predictions legal?
• Current sports topics offered
• How DraftKings Predictions differs from sportsbooks
• DraftKings Predictions pros and cons

DraftKings Predictions takes the idea of prediction markets and brings it into an ecosystem many fans already know and use.

Launched in December 2025, it’s one of the first U.S. sportsbook platforms to offer a federally regulated way to buy and sell predictions on real-world events — like whether your team wins a championship or a player takes home MVP.

It works like a stock market for sports predictions. Instead of betting against DraftKings, you’re trading with other users. Prices go up or down in real time based on things like breaking news and injuries.

Because it’s built on DraftKings’ existing platform, everything feels fast and familiar. The app uses its large user base and sports partnerships to make trading predictions feel as natural as following a live game.

In this beginner’s guide, we’ll break down how it all works — what contracts are, how pricing works, how to get started and what makes DraftKings Predictions different from traditional sportsbooks.

What is DraftKings Predictions?

In December 2025, DraftKings became the first U.S. sportsbook operator to also offer a prediction market platform with the launch of DraftKings Predictions. DraftKings Predictions is a federally regulated prediction market that allows users to buy and sell contracts, or shares, on the results of real-world events and outcomes, similar to how a stock exchange operates. 

“We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports," said Corey Gottlieb, Chief Product Officer of DraftKings. “Along with our operational footprint, marketing and analytics infrastructure and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.”

Each market asks a clear yes-or-no question tied to a specific outcome and date. For example, a market may ask whether a team will win a game on a given night or if a team will win the championship in its respective sport.  

When was DraftKings Predictions created?

DraftKings Predictions launched in December 2025. The DraftKings company, though, was founded on Dec. 31, 2011 and launched its first daily fantasy sports (DFS) product in 2012.

The company was founded by Jason Robbins, Matthew Kalish and Paul Liberman and is headquartered in Boston, Massachusetts. The company also launched it's first sportsbook offering in the state of New Jersey in 2018 and became a publicly traded company in 2020.

DraftKings was able to leverage its existing infrastructure and user base through its other platforms to hit the ground running with DraftKings Predictions. 

Platform details and requirements

The DraftKings Predictions platform is available on iOS and Android apps, and there's also a web-based platform as well. 

Anyone who is 18 years old or older can participate on the DraftKings Predictions platform. Identity verification is required through the Know Your Customer (KYC) process. You'll also need a U.S. bank account or other approved payment method. Unlike some other prediction markets, crypto is not required. Users must also submit their social security number for tax reporting as well as an e-mail address for verification. 

DraftKings Predictions is not available in every state currently, so geolocation is also required. While the platform is federally regulated by the Commodity Futures Trading Commission (CFTC), it has avoided operating in states where there is a high level of legal pushback. Some states contend that prediction markets are too similar to sports betting and operate as an exchange to avoid state regulations.  

How DraftKings Predictions works

With DraftKings Predicitons, instead of betting against a sportsbook, you're trading against other people, similar to a stock exchange. 

The price you see on a prediction market isn’t set by a sportsbook. Instead, it reflects what other traders are willing to pay or sell for at that exact moment. When you buy a contract, you’re free to sell it at any time before the market closes. This is similar to a “cash out” option in sports betting, but with one major difference — on prediction markets, you always have the option to exit your position whenever you choose, not just when a sportsbook decides to offer it.

Contracts, or shares, are priced between $0.01 and $0.99, and the price reflects how likely the market thinks that particular outcome is. If the event happens (Yes), the contract pays the user $1. If the event does not happen (No), the contract pays $0. The user's profit is the difference between what you paid for the contract and the $1 payout, minus any fees.

Since DraftKings already had a sportsbook userbase to tap into, their default display mode shows the number as more traditional betting odds. But if you prefer seeing the probability percentages, you can toggle to that under settings once you're logged in.

Trading on DraftKings Predictions

Let's take a look at a real-life example. After scanning the awards markets for Major League Baseball, "AL MVP" catches your eye. The two most probable winners are Aaron Judge (+194) and Bobby Witt Jr. (+376). While those might be the two options with the highest probability of happening, you may decide that you want to take a chance on a player who is more of a long shot, which would increase the payout. Coming off a stellar World Series performance and an impressive World Baseball Classic, Vladimir Guerrero Jr. catches your eye at +614.

If you want to buy a Vladimir Guerrero Jr. contract, the price is listed at +614, which is the equivalent of $.014. That also means there's a 14 percent implied probability that Vladimir Guerrero Jr. will win the AL MVP award.  

Now that you've made up your mind, it's time to execute the transaction. You decide you want to spend $20 on this market. That means you're purchasing 142 contracts or shares that Vladimir Guerrero Jr. to win the AL MVP will result in a "Yes" outcome. If Guerrero does indeed win the AL MVP, DraftKings Predictions will pay out $125, which factors in fees. That would be a profit of $105. If Guerrero does not win the award, then there is no payout from DraftKings Predictions, and you lose your $20 investment. 

But what happens if a month down the road, you read a report that Guerrero could be dealing with oblique discomfort. At present time, there aren't any reports that it is a full blown strain or that an IL stint is imminent. But it's also common for oblique issues to persist if there isn't a proper recovery. There isn't currently widespread concern about his physical health, but you're concerned enough you think it makes sense to try and exit your AL MVP position.

One of the benefits of using a prediction market, is that you can exit a position at any time. With sports betting, you have to hope that you'll be presented with a cash-out option, but you're at the mercy of the sportsbook. 

If the news had become widespread, the price of your shares or contracts likely would have decreased significantly because many others would also be trying to sell, lowering the value, and in turn, the probability of the outcome. But right now, it's been just one report from an obscure source, so there hasn't been a lot of activity. Still, there's been enough movement where the price of your contracts are $0.12. You decide it's time to sell before the price goes down further, and you execute that transaction, which nets you $17.04 minus any fees. That means you lost $2.96 on your initial $20 investment. But if you held on to the contracts and Guerrero did not win the MVP, you would have lost your entire $20 investment. 

Is DraftKings Predictions legal?

DraftKings Predictions is federally regulated by the CFTC, but unlike some other prediction markets, this platform has also decided not to operate fully in states where there is heavy legal pushback. Some states argue that prediction markets are equivalent to traditional sports betting and should be subject to the same state regulations. 

Here is a list of the states where all markets are available: 

• Rhode Island
• South Carolina
• Georgia
• Florida
• Alabama
• Minnesota
• Texas
• Oklahoma
• Nebraska
• South Dakota
• North Dakota
• New Mexico
• Utah
• Idaho
• California
• Alaska
• Hawaii
• Delaware

Here is a list of states where only financial markets are available: 

• Connecticut
• Pennsylvania
• Tennessee
• Arkansas
• Illinois
• Iowa
• Montana
• Arizona
• Nevada
• Washington
• Michigan
• Ohio

Here is a list of states where sports markets are unavailable: 

• Massachusetts
• Vermont
• New York
• New Jersey
• Maryland
• Washington D.C.
• Virginia
• West Virginia
• North Carolina
• Kentucky
• Indiana
• Mississippi
• Louisiana
• Missouri
• Wisconsin
• Kansas
• Colorado
• Wyoming
• Oregon

DraftKings Predictions also provides a map showing what is available in each state. 

Current sports topics offered on DraftKings Predictions

DraftKings Predictions offers a wide array of markets across several sports. Here's a list of every sport currently offered on the platform: 

• College basketball (men's)
• College basketball (women's)
• MLB
• NBA
• NHL
• Tennis
• Golf
• UFC
• Soccer
• Formula 1

Within many of those sports there are can be subcategories for markets as well. Let's take a closer look at one of those. 

MLB futures on DraftKings Predictions

Let's take a look at each MLB futures market offered by the platform: 

• MLB American League East winner 2026
• MLB American League Central winner 2026
• MLB American League West winner 2026
• MLB National League East winner 2026
• MLB National League Central winner 2026
• MLB National League West winner 2026
• MLB American League winner 2026
• MLB National League winner 2026
• MLB World Series winner 2026

How DraftKings Predictions differs from sportsbooks 

While there are certainly similarities between trading on DraftKings Predictions and placing wagers with a sportsbook, they operate very differently in how transactions are structured, executed and regulated. Let's take a closer look at what differentiates DraftKings Predictions from sportsbooks. 

Who you're trading against: In legalized sports betting, you're wagering against a sportsbook, or the house. If you lose a bet, the sportsbook you're wagering with keeps your money. On DraftKings Predictions, you're trading in a peer-to-peer marketplace with other users. When you purchase a contract on DraftKings Predictions, you're essentially taking the other side of someone else's position. If you decide to sell a contract, another user must buy your position for you to successfully exit the trade. DraftKings Predictions does earn money through fees on transactions, but they do not profit from the losses of its users. 

Pricing and implied odds: Sports betting odds are set by oddsmakers, but they also typically factor in a margin for the house, which is called the "vig". By doing this, sportsbooks are guaranteed profits over time. Things work differently on DraftKings Predictions, though. The prices on DraftKings Predictions are set by the market itself — or by supply and demand. As more users buy or sell their contracts based on new information — such as injuries, lineup changes, trends, etc. — prices fluctuate in real time. 

Trading flexibility: When placing a wager with a sportsbook, your bet is typically locked in, and you just have to wait for the final outcome and hope for the best. There are times a sportsbook may give you a cashout option leading up to, or even during an event, but that optionality is not guaranteed. On DraftKings Predictions, you can buy or sell a contract at any time before the market concludes. This gives you flexibility when news changes the implied odds of an outcome. 

Types of markets: With sportsbooks, you're wagering options are typically limited to sports, as the name would suggest. With DraftKings Predictions, though, you can typically find markets on anything from politics to entertainment to science and everything in between. The availability of those markets, though, could be dependent on which state you're in.

Legal status and regulation: Sports betting laws can be different state by state, and there are also some states that don't allow legal sports betting at all. DraftKings Predictions is regulated by the federal government, though, so, in general, there aren't different rules in each state. DraftKings Predictions, though, has decided to work within state regulations to avoid heavy legal pushback for the time being. 

Limits and restrictions: Sportsbooks are known to limit and even ban bettors who have had too much success on their platform. This is their way of trying to limit "sharp" bettors. With prediction markets, though, there really aren't similar restrictions.

DraftKings Predictions pros and cons

When deciding which prediction market platform to use, it only makes sense to go through the pros and cons. Let's take a look at the pros first. 

• Familiar look and feel for DK sports bettors
• Trusted brand and reputation as a publicly traded company
• User-friendly experience
• Low barrier of entry
• No crypto requirements
• Transparent pricing
• Customer support
• Integration with DraftKings infrastructure
• No limits
• Convenient deposit and withdrawal process
• Legal and regulated
• Mainstream appeal

What are some of the cons associated with the DraftKings Predictions platform?

• Limited availability in several states
• Newer platform than some competitors
• Limited market availability
• Higher fees than some platforms
• Geographic restrictions enforced
• Dependent on DraftKings company (as opposed to a decentralized platform)
• Limited history
• Insider trading concerns
• Regulatory uncertainty in some states