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DraftKings is preparing to launch a new “super app” that could allow Californians to participate in sports-related predictions, even though traditional sports wagering remains illegal in the state.
The Boston-based operator recently unveiled plans for DraftKings Sports & Casino, a single platform that combines its sportsbook, iGaming, lottery, and prediction markets products into one integrated app with a shared account and wallet.
While the sportsbook portion of the app will only function in states where online sports betting is legal, DraftKings’ prediction markets are designed to operate where sports wagering is not legal, including in California.
A sportsbook-like experience without sports betting
Prediction markets allow users to trade contracts tied to the outcome of events, including sporting contests. Instead of placing a traditional wager, users buy “yes” or “no” contracts on outcomes such as whether a team will win a game.
Those contracts are typically regulated differently than traditional gambling products because they are structured as financial instruments under federal oversight rather than state gaming laws. The market is also considered peer-to-peer, not “against the house.”
That distinction means DraftKings can offer sports-related prediction contracts in states that have not legalized sports wagering. The company already operates prediction markets in multiple jurisdictions where sportsbooks are not allowed.
Under the new super app model, DraftKings says the platform will automatically tailor its offerings depending on local regulations. In states like New York or New Jersey, users will see the full sportsbook experience. In California, however, the sports interface would instead display prediction-style markets tied to sporting events.
According to a DraftKings’ investors presentation, the predictions section looks extremely similar to the operator’s traditional interface as seen in legal markets such as New York and New Jersey. And instead of wagering on popular same-game parlays, customers could combine contracts, which DraftKings calls “combos.”
In addition to sports, political and pop culture contracts will also be available to buy.
Industry analysts say the approach effectively extends a sportsbook-style experience into markets where wagering remains prohibited.
The operator said the first phase of the app will launch around March Madness, but DraftKings did not say which states will come first.
Daily fantasy will stay separate
One notable product missing from the new super app is DraftKings’ daily fantasy sports contests.
Despite integrating several gaming verticals into the new platform, DraftKings said DFS will remain in its own standalone app rather than being included in the super app launch.
For California users, that means DraftKings DFS will remain separate from the new sports predictions platform.
Still, the super app signals how operators like DraftKings are looking for ways to reach California players even while the state’s long-running sports betting debate remains unresolved.
California still waiting on sports wagering
California remains the largest untapped sports market in the US. Voters rejected two competing legalization proposals in 2022, and any future effort to bring sports wagering to the state is unlikely before the 2026 election cycle at the earliest.
By offering prediction-style sports contracts, DraftKings could begin building a customer base in California years before traditional wagering is allowed.
The company has identified predictions as a major growth opportunity, projecting the category could eventually generate billions in annual revenue as it expands nationwide.
