DraftKings has introduced DKeX, its own prediction markets exchange, integrated within the DraftKings: Sports & Casino app. This move enhances the DraftKings Predictions product, allowing the company to exert greater control over its technology, content offerings, operational economics, and overall customer experience.
The DKeX exchange leverages technology and a CFTC license obtained through DraftKings' acquisition of Railbird Technologies. According to DraftKings, this new platform will facilitate quicker product development as it broadens its prediction market offerings alongside its sportsbook.
As of June 21, DraftKings Predictions reported an impressive annualized consumer volume of around $3.4 billion and a total trading volume of approximately $11.3 billion for the same period.
The company anticipates continued growth in July, fueled by platform enhancements, new event contracts, and heightened interest linked to the World Cup. Since its launch in mid-May, over 30% of users have engaged with combinations, which enable the bundling of multiple individual contracts into a single position.
Jason Robins, the Chief Executive Officer and Co-Founder of DraftKings, stated, "DraftKings excels in creating innovative platforms that merge technology, customer-centricity, and top-tier execution to redefine sports engagement." He added that the recent momentum in DraftKings Predictions highlights the significant strides made in providing a more cohesive experience for sports enthusiasts.
Robins emphasized that DKeX offers a vertically integrated foundation for DraftKings Predictions, enhancing the content and capabilities of their prediction markets, thus allowing for greater control over the underlying technology and enabling faster advancements in their unified app.
The DraftKings Sports experience merges sports betting with prediction market trading, all within a single app. Depending on the user's location, sportsbook offerings and sports event contracts are available nationwide, covering 18 states.
Recent updates to the platform include Predictions Sports Combos, expanded pre-game and in-play statistics, dedicated hubs for significant events like the World Cup, and a continuously updated Live tab for real-time sports events. Additionally, DraftKings Predictions has introduced MLB player contracts, futures contracts, No Runs First Inning baseball, and a wider selection of NBA and NHL options, alongside international sports.
Jeanine Hightower-Sellitto, DraftKings Senior Vice President and General Manager of Prediction Markets, remarked, "The launch of DKeX and its integration into our unified app marks a significant advancement in delivering a premier customer experience in sports across the nation." She noted the rapid development across Predictions, from expanding event contract offerings to introducing popular features like combos, which have been quickly adopted by users. DKeX represents a key milestone in this evolution, paving the way for further expansion ahead of major sporting events.
Customers can access the prediction markets via the DraftKings: Sports & Casino app, available on both iOS and Android platforms.