DraftKings is actively selling sports event contracts in 18 states where it does not operate an online sportsbook, while refraining from such sales in the 27 states where it does have a sportsbook. This strategy allows the company to assure investors that its products have minimal overlap, inform the NFL that its advertisements remain compliant, and communicate to fans that they are accessible in all 50 states. This approach hinges on a legal interpretation that is currently under review by the Supreme Court: whether a contract related to a Cowboys spread sold in Texas qualifies as sports betting.
On August 31, DraftKings launched its “Take Your Game Anywhere” campaign, emphasizing its availability in all 50 states. Chris Mendez, the creative director from the agency Translation, stated that this was made possible through their sportsbook and prediction offerings.
While the claim holds true, the underlying mechanics are particularly intriguing. DraftKings' availability page categorizes states into three distinct lists: “Online sports betting” includes 27 states along with Washington, D.C., and Puerto Rico; “Prediction sports markets” encompasses 18 states, including Alabama, California, Texas, and others; and “Free-to-play sports contests” covers the remaining five states: Mississippi, Montana, Nevada, Washington, and Wisconsin. Notably, no state appears on more than one list.
Stephen Miraglia, DraftKings’ senior director of communications, clarified to Gambling Insider that the company does not offer prediction markets in states where it has an online sportsbook. Conversely, in states where the sportsbook is not permitted, DraftKings offers prediction markets and daily fantasy sports.
In a June 26 announcement regarding its in-house exchange, DKeX, DraftKings reiterated that its sports experience is available nationwide, including sports event contracts in 18 states. ESPN reported on August 27 that DraftKings, FanDuel, and Fanatics provide prediction markets in states lacking legal sports betting.
The differentiation is crucial. DraftKings avoids offering sports contracts in states with sportsbooks. The Predictions app was launched in December across 38 states, with financial-only markets available in some sportsbook states like Connecticut. The December launch highlighted the availability of sports event contracts in states such as California, Florida, Georgia, and Texas.
DraftKings' strategy addresses three key challenges. First, the NFL confirmed to Gambling Insider that advertising for prediction markets is prohibited in its games and venues, and that sportsbook partners must promote approved products only. DraftKings has assured that its 50-state campaign does not air during NFL broadcasts and that all advertisements are pre-approved by the league, minimizing any potential costs.
Second, regulators are a focus. The company’s targeted predictions campaign on August 25 aimed at California, Texas, Georgia, and Florida—four of the largest states without a legal online sportsbook—offering $200 bonuses for a $5 initial trade. CEO Jason Robins made it clear that these states were selected for this specific reason, promoting the message that there are no other options available.
Lastly, addressing investor concerns, the company argues that its two product lines do not detract from one another. In a first-quarter update to shareholders, Robins stated that there has been no noticeable impact from the rise of predictions on the sportsbook business, with data indicating only a minimal effect on overall industry revenue, primarily affecting low-margin wagers.