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Building on its pivot to prediction markets, gambling giant DraftKings has confirmed that it will launch a market-making arm in the new sector.
DraftKings focuses on prediction markets moving forward a letter to its shareholderswhich was published on Thursday (February 12), along with the company’s quarterly report. Likewise partnered with Crypto.com to breed prediction market business arm and launch a dedicated appDraftKings has now confirmed plans to launch the marketplace as “a core part of the customer experience.” That means it will offer buy (bid) and sell (ask) prices for event contracts, like Kalshi and Polymarket.
“We have been building DraftKings for over 14 years,” the letter read. “When a new growth line opens, we move fast and execute at scale. Forecasts are the most exciting new growth opportunities we’ve seen since PASPA was struck in 2018. Early signals are strong.”
The letter noted that Super Bowl Sunday saw DraftKings Predictions have the second most app downloads in its category, as well as delivering three times the previous record for daily trading volume.
Next steps for DraftKings
Later in the letter to shareholders, DraftKings confirmed that it will launch market creation in an effort to continue its growth in the market space.
“Contract listings, fees, market structure, and distribution matters, but tight two-way markets with depth are what attract participants,” the letter reads. “Exchange seed liquidity by incentivizing market-makers, and DraftKings can lead the market for sports contracts because we model sports probabilities so well and have the infrastructure to provide liquidity across a wide spectrum of contracts.”
The goal is to create two revenue streams for DraftKings in the prediction market space: transaction fees, through the DraftKings Predictions app; and trading economics from market-making and proprietary trading, in one’s own exchange and possibly in other exchanges.
DraftKings is following suit Nevada gaming regulators crack down on prediction markets in November 2025, taking key licenses from them, while the state continues to battle in court over whether sports event contracts and political prediction markets are legal.
Featured image: DraftKings
The post DraftKings has announced plans to launch a market-making arm for the prediction sector first appeared in ReadWrite.
