DraftKings Predict Plan Falters as Application Pulled
DraftKings hit pause on its prediction market ambitions, withdrawing an application for “DraftKings Predict” filed with the National Futures Association (NFA) in July 2024. The proposed entity, set to rival Kalshi and PredictIt, would have had co-founder Paul Liberman as CEO.
A Step Back from Prediction Markets
No official reason for this decision was given, but a DraftKings spokesperson said the firm continues to monitor prediction markets as “an emerging product that reflects evolving consumer engagement and requires careful consideration.” The move clouds DraftKings’ plans in a $500 million market gaining traction.
Speculation points to regulatory hurdles. Unlike sports betting, governed by state laws, prediction markets fall under the federal Commodity Futures Trading Commission (CFTC).
Kalshi’s legal battles, with states like Nevada or Tennessee challenging its sports contracts, may have spooked DraftKings, which operates in 24 states.
“We’re keeping a close eye on the regulatory landscape,” a DraftKings executive noted in a March 2025 investor call, signaling caution.
The firm’s also wary of California’s tribal and state objections, with Jeremy Elbaum stating DraftKings Predict won’t launch there.
Why the Retreat?
Legal and regulatory tangles likely drove the withdrawal. Kalshi, a non-NFA member, faces pushback for offering MLB derivatives, seen as bookmaker-like by critics, Gaming Law Review article.
DraftKings, regulated state-by-state, might avoid CFTC oversight conflicts. Membership in NFA, where Robinhood is approved and Crypto.com is pending, isn’t clearly required for prediction markets, leaving DraftKings’ intent murky.
Prediction markets offer perks, potentially sidestepping high state taxes like New York’s 51% or accessing banned jurisdictions. “DraftKings is rooting for prediction markets’ growth,” Citizens Bank reported, citing the firm’s optimism.
CEO Jason Robins has long eyed the space, but the eight-month gap from application to withdrawal hints at strategic rethinking. With Kalshi’s $100 million handle in 2024, DraftKings may be dodging risks until the legal fog clears.
What It Means for DraftKings
The pullback doesn’t end DraftKings’ interest. The spokesperson told Covers.com that they’re not closing the door on this. The NFA withdrawal raises questions. Was it a tactical retreat or a sign of bigger plans?
For now, DraftKings Predict is shelved, with no clear timeline for revival. The firm is monitoring the CFTC’s April 30 roundtable, where Tennessee’s anti-prediction market stance may sway rules.
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