It's official: DraftKings just changed the game. Again.

Today, December 19th, DraftKings launched its standalone prediction markets app — DraftKings Predictions — in 39 states across the country. If you live somewhere sports betting isn't legal, you might still be able to bet on sports. Sort of.

Let us explain.

The Quick Hit

• Launch date: TODAY (December 19, 2025)
• Available in: 39 states
• Partner exchange: CME Group
• What you can trade: Sports outcomes (in non-betting states) and financial markets (everywhere)

How This Works

DraftKings Predictions isn't technically a sportsbook. It's a "prediction market" that operates through CME Group's regulated exchange. This lets DraftKings offer sports-related trades in states where traditional sports betting is still illegal.

In states WITHOUT legal sports betting: You can trade on sports outcomes AND financial markets.

In states WITH legal sports betting: You can only trade on financial markets (since you can already bet on sports through DraftKings Sportsbook).

It's a clever workaround. Prediction markets are regulated by the CFTC (Commodity Futures Trading Commission), not state gaming commissions. Different regulator, different rules.

What Can You Actually Trade?

The DraftKings Predictions app offers contracts on:

Sports (in non-betting states):

• NFL game outcomes
• NBA game outcomes
• College football results
• Other major sporting events

Finance (everywhere):

• Stock market movements
• Economic indicators
• Interest rate decisions
• Other financial events

The contracts work like yes/no binary options. You buy a contract for a certain price, and if your prediction is correct, you get paid out. If you're wrong, you lose your stake.

Why This Matters

Remember when DraftKings and FanDuel quit the American Gaming Association and surrendered their Nevada licenses last month? This is why.

The prediction markets space is exploding. Kalshi and Polymarket saw massive growth during the 2024 election cycle, and DraftKings doesn't want to be left behind. By partnering with CME Group, they're positioning themselves as a major player in this new market.

FanDuel isn't far behind — they announced FanDuel Predicts will launch later this month through the same CME partnership.

The Catch

There are some limitations:

1. It's not the same as sports betting. The contracts and payouts work differently than traditional fixed-odds betting.

2. CME takes a cut. Your trades flow through CME's exchange, which means additional fees compared to DraftKings Sportsbook.

3. State restrictions still apply. Some states have blocked prediction markets entirely, so not all 39 states have full access.

4. Learning curve. If you're used to traditional sports betting, the prediction market format takes some getting used to.

What the Experts Are Saying

Analysts are mixed. Some see this as the future of gambling — a way to bet on literally anything from anywhere. Others see it as a regulatory gray area that could face crackdowns.

The AGA (American Gaming Association) is actively fighting against prediction markets, which is exactly why DraftKings and FanDuel quit the organization. The battle lines are drawn.

Should You Download It?

If you live in a state without legal sports betting and you've been dying to get some action, DraftKings Predictions gives you a legal option. It's regulated, it's legit, and it's from a company you already know.

If you already have access to DraftKings Sportsbook, the Predictions app is less useful for sports — you'll only be able to trade financial markets. But if you're into that kind of thing, knock yourself out.

The Bottom Line

DraftKings just expanded their reach into 39 states with a new product that sidesteps traditional sports betting regulations. Whether you see this as innovation or exploitation depends on your perspective.

Either way, it's here. The prediction markets war has officially begun. And DraftKings fired the first shot.

Download it. Try it. Let us know if it scratches that degen itch.