DraftKings Prediction Markets
DraftKings Predictions is a separate event-contract trading product for sports, politics, crypto, financial markets, economics, business and culture. Traders buy positions tied to defined outcomes, manage them before settlement and receive $1 per correct contract when the published resolution conditions are satisfied.
Market access, promotions and product eligibility depend on age, account status and physical location. Event-contract trading can result in the loss of the full amount paid for a position.
New Customers Spend $5 and Get $150 in Bonuses
The current DraftKings Predictions offer pays qualifying bonuses over 14 days. Eligibility, opt-in requirements, market restrictions, Predictions Dollars rules and expiration terms can apply.
What Is DraftKings Predictions?
DraftKings Predictions applies familiar DraftKings navigation to federally regulated event contracts rather than conventional wagers.
Each market asks a measurable question and lists the conditions that decide the result. A trader can buy Yes or No, or choose among several named outcomes when the market has more than two possible results. Prices and displayed odds change as orders are placed and information reaches the market.
DraftKings Predictions operates through a DraftKings subsidiary that is registered with the Commodity Futures Trading Commission as an Introducing Broker and is a member of the National Futures Association. The product can connect customers to event contracts listed by more than one exchange, which gives DraftKings a route to expand the number and type of questions available.
The product belongs within the broader group of Prediction Markets, but it isn't the same service as DraftKings Sportsbook, Daily Fantasy Sports, Pick6 or Casino. A single DraftKings brand can provide access to several products while each product follows its own rules, availability map and regulatory structure.
How DraftKings Predictions Works
The trading sequence is simple, but price, rules, liquidity and timing decide the financial result.
Choose a Question
Review the event, deadline, listed outcomes, exchange and resolution conditions before committing money.
Select an Outcome
Choose Yes, No or another named result and compare its current price with your own probability estimate.
Review the Order
Confirm the contract count, price, transaction fee, exchange fee and maximum amount at risk before submitting.
Sell or Settle
Buy more, sell before settlement or hold until the correct outcome pays $1 per contract and incorrect contracts pay $0.
DraftKings Event Contract Example
Suppose a Yes contract costs $0.42 and you purchase 100 contracts. The contract cost is $42 before transaction and exchange fees. When the event resolves Yes, the position returns $100 and produces a $58 gross profit before fees. When it resolves No, the contracts pay $0 and the $42 purchase cost is lost. The $0.42 entry price also represents the market's current pricing of that outcome, not a guaranteed probability. Before settlement, the contract price can rise or fall as traders react to new information. Selling at $0.60 would return $60 before fees, while selling at $0.25 would return $25 and lock in a loss. Holding until settlement keeps the full $100-or-$0 result in place.
Example Calculation
DraftKings Predictions vs DraftKings Sportsbook
Both products can involve sports outcomes, but their contracts, pricing, counterparties and regulators aren't the same.
| Feature | DraftKings Predictions | DraftKings Sportsbook |
|---|---|---|
| Product | Event contracts tied to defined future outcomes | Sports wagers accepted under state sports-betting rules |
| Pricing | Contract prices or equivalent American odds move with the market | Sportsbook odds and lines are posted for wagers |
| Position management | Eligible positions can be bought, sold or held to settlement | Cash-out availability depends on the wager and current offer |
| Regulatory structure | Federally regulated event-contract access through a CFTC-registered Introducing Broker | State-regulated sports wagering where DraftKings Sportsbook is licensed |
| Topics | Sports, politics, crypto, financials, economics, business and culture | Professional, college and other approved sporting events |
| Availability | Predictions availability and market types depend on physical location | Sportsbook availability depends on state or jurisdiction licensing |
DraftKings Predictions isn't a substitute label for DraftKings Sportsbook. A sports event contract can look familiar because the underlying question involves a game or team, but the customer is trading a federally regulated contract instead of placing a standard state-regulated sportsbook wager.
Is DraftKings Legal in Your State?
Select your state and a DraftKings product to review current availability, the applicable product structure and important location restrictions.
Availability is based on DraftKings' published state lists and can change. You must satisfy age, identity, account and physical-location requirements. The information shown here is educational and isn't legal advice.
DraftKings Predictions Fees, Funding and Payouts
Contract price is only one part of the total trade because platform and exchange charges can apply.
Transaction Fee
DraftKings publishes a $0.01 transaction fee for every event contract bought or sold.
Exchange Fee
The exchange listing the contract can charge a separate fee, which should be reviewed on the order screen.
Account Funding
Deposits must come from an eligible personal payment account held in the customer's full legal name.
Separate Balance
DraftKings Predictions funds are handled separately and can't simply be used across every other DraftKings product.
Correct and Incorrect Contract Payouts
A correct event contract pays $1 at settlement, while an incorrect contract pays $0. Gross profit equals the $1 settlement value minus the original purchase price, transaction charges and any separate exchange fee. The amount paid for the contract is generally the maximum contract cost at risk when the position is held through the final result. Traders aren't required to wait for settlement, but an early exit depends on an available buyer and the price offered at that time. Selling above the entry price can secure a profit before the event ends, while selling below it locks in a loss. The market's published resolution rules determine the winning outcome, so the source, deadline and settlement conditions should be reviewed before placing the order.
Taxes and Account Records
DraftKings states that event-contract payments can be treated as income and reported on Form 1099 when applicable. Customers remain responsible for determining their federal, state and local reporting obligations, including how gains, losses, fees and promotional credits apply to their individual circumstances. Account statements should be retained with records of deposits, withdrawals, contract purchases, sales, settlement payments and transaction costs. Those details can help reconcile the net result shown in the account with any tax document issued for the year. Tax treatment can depend on the customer and activity involved, so anyone uncertain about reporting should consult a qualified tax professional rather than relying only on the platform's year-end total.
DraftKings Fantasy Sports
Daily Fantasy Sports is one of DraftKings' core products and gives sports fans another skill-based way to participate without turning fantasy contests into prediction contracts.
Build a Fantasy Lineup
Select real athletes under the contest salary cap, then earn fantasy points from their actual game performance.
Choose a Contest
Contest length, entry fee, field size, payout structure and scoring rules differ, so each contest should be reviewed before entry.
Major Fantasy Sports
DraftKings lists football, basketball, baseball, golf, hockey, NASCAR, F1, UFC, soccer, college sports, tennis and esports.
Where Paid DraftKings Fantasy Contests Aren't Available
DraftKings states that paid fantasy contests aren't available while a customer is physically located in Hawaii, Idaho, Montana, Nevada, Oregon or Washington, or in select Louisiana parishes. Free contests can have broader availability, and higher minimum ages can apply in some states.
DraftKings Fantasy Golf, Fantasy Football, Fantasy Basketball and other DFS contests use athlete performance and fantasy scoring. DraftKings Predictions instead trades contracts tied to defined event outcomes. The products share a sports audience, but they don't use the same entry structure or settlement rules.
How Predictions Connects to Other DraftKings Products
DraftKings serves several types of customers through products that appear under one brand but follow separate rules and access maps.
DraftKings Predictions
The central focus of this page, with event contracts across sports and real-world topics through a federally regulated structure.
Daily Fantasy Sports
Salary-cap lineups and contest scoring based on the real-game performance of selected athletes.
DraftKings Pick6
A separate picks product where customers select whether player statistics will finish above or below listed targets.
DraftKings Sportsbook
State-regulated sports wagering offered only in jurisdictions where DraftKings has the required authorization.
DraftKings Casino
Regulated online casino games offered in a limited group of states under separate gaming rules and licensing.
DraftKings Racing
Pari-mutuel horse-racing access that follows racing laws and a product-specific state availability map.
Sportsbook and Casino are covered here only to explain the DraftKings ecosystem and regulatory differences. DraftKings Predictions and Fantasy Sports are the products highlighted for readers on this page.
DraftKings Stock and the DKNG Ticker
DraftKings Inc. trades publicly on Nasdaq under the ticker DKNG. Buying DKNG stock creates an equity position in the company, while buying a DraftKings Predictions contract creates a temporary position tied only to a named event. Prediction contracts don't provide company ownership, voting rights or a claim on corporate earnings. The Predictions business can still matter to investors because it expands DraftKings into event-contract trading and can reach customers in states where traditional online sports betting isn't offered, but that expansion doesn't guarantee revenue growth or a higher DKNG share price.
DraftKings Company History and Predictions Expansion
DraftKings developed from a daily fantasy business into a public company with sports, gaming, media and event-contract products.
DraftKings Launches
Jason Robins, Matt Kalish and Paul Liberman launch DraftKings in Boston with Daily Fantasy Sports as the original product.
DKNG Begins Trading
DraftKings becomes a publicly traded company, with Class A shares listed on Nasdaq under the DKNG ticker.
Predictions Launches
DraftKings introduces a standalone Predictions app and website for federally regulated event-contract trading.
National Product Reach
Predictions, Daily Fantasy, Sportsbook and free sports contests give DraftKings a product presence across all 50 states.
Is DraftKings Predictions Safe and Legit?
DraftKings Predictions is a real regulated product, but regulation doesn't remove market losses, account risks or eligibility rules.
Registered Intermediary
DraftKings Predictions operates through a CFTC-registered Introducing Broker and NFA member.
Location Verification
The platform checks physical location because states can permit different market categories or no markets.
Responsible Trading
DraftKings provides deposit limits, cool-off options, self-exclusion and educational material for event-contract users.
Full-Loss Risk
An incorrect contract can lose its entire purchase cost, and an early sale can occur below the original entry price.
Account security also depends on accurate identity information, protected login credentials and careful payment use. Customers should review the market rules, final order screen, fee disclosure and account statements rather than relying on a headline or displayed probability alone.
Review the DraftKings Predictions Offer
New DraftKings customers can spend $5 and receive $150 in qualifying bonuses paid over 14 days under the current offer. Confirm the account invitation, opt-in step, eligible markets and Predictions Dollars terms before placing the qualifying trade.