Following Kalshi’s recent court victory and the arrival of another prediction market competitor, DraftKings has decided to make California one of 38 states it has launched its new prediction market platform in.
DraftKings Predictions formally entered the prediction market (PM) landscape last week under the oversight of the US Commodity Futures Trading Commission (CFTC).
DraftKings Predictions has also launched in Texas. It and the Golden State have a combined population of more than 70 million people, making for a massive potential market, especially considering that neither state has legalized sports betting.
New customers have a chance to win $1M
DraftKings Chief Product Officer Corey Gottlieb said the company has set lofty goals for its PM platform.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers. 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.
“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.”
The launch press release also notes that new customers will have a chance to win $1 million by using the platform, with multiple ways to enter. It also noted, “In states where sports event contracts are available, customers can also receive up to a $25 trade bonus based on their first trade.”
Although the market allows customers to predict non-sports events, such as stock market and commodities performance, the front page of DraftKings Predictions prominently displays sports point spreads and odds. It’s similar to the formatting DraftKings uses on its sports wagering platform.
Court ruling allows Kalshi to continue
In July, three Native American tribes in California filed a lawsuit against Kalshi and Robinhood. The suit demanded the PMs quit operating on tribal lands, invoking the Indian Gaming Regulatory Act and the state’s Tribal-State Gaming Compacts.
The tribes also sought an injunction against Kalshi to halt its operations immediately. In November, the US District Court Northern District of California denied the injunction, allowing Kalshi to continue to operate throughout California.
Fanatics Markets, FanDuel Predicts come online
That ruling was followed in early December by Fanatics launching is Fanatics Markets PM in California. At the time, Fanatics CEO Matt King said, “We’re giving fans a safe, and intuitive way to engage with the moments that move sports and culture, and to pick a side.”
Interestingly, DraftKings did not launch its PM through the CTFC-licensed Railbird, which DraftKings purchased in October “so it could facilitate wagers on its own infrastructure instead of serving as a broker for someone else’s exchange,” Sportico reported.
The article noted:
“Instead, DraftKings Predictions will partner with CME Group at the onset, meaning all activity in its app will flow through a CME-owned exchange.”
Reuters reported that FanDuel has launched its own PM, FanDuel Predicts, also in collaboration with CME Group, in five different states. While California is not among the initial list, additional states are expected to come online in early 2026.
