Building on its pivot into prediction markets, gambling giant DraftKings has confirmed it will launch a market-making arm in the new sector.
DraftKings has made its focus on prediction markets moving forward clear in a letter to its shareholders, published on Thursday (February 12), alongside the company’s quarterly report. As well as collaborating with Crypto.com to spawn the prediction markets business arm and launching a dedicated app, DraftKings has now confirmed plans to launch market-making as “a core part of the customer experience.” That means it will offer both buy (bid) and sell (ask) prices for event contracts, much like Kalshi and Polymarket.
“We have been building DraftKings for more than 14 years,” reads the letter. “When a new growth lane opens, we move fast and execute at scale. Predictions is the most exciting new growth opportunity we have seen since PASPA was struck down in 2018. Early signals are strong.”
The letter goes to note that Super Bowl Sunday saw DraftKings Predictions with the second most app downloads in its category, as well as delivering three times its prior record for daily trading volume.
Next steps for DraftKings
Later on in the shareholders letter, DraftKings confirmed it would be launching market-making in an effort to continue its growth in the predictions market space.
“Contract listings, fees, market structure, and distribution matter, but tight two-way markets with depth are what attract participants,” reads the letter. “Exchanges seed liquidity by incentivizing market-makers, and DraftKings can lead market-making for sports contracts because we model sports probabilities exceptionally well and have the infrastructure to provide liquidity across a broad spectrum of contracts.”
The goal is to create two revenue streams for DraftKings in the predictions market space: transaction fees, via the DraftKings Predictions app; and trading economics from market-making and proprietary trading, both on its own exchange and possibly on other exchanges.
DraftKings’ move follows Nevada gaming regulators’ crackdown on prediction markets in November 2025, pulling key licenses from them, while the state continues to battle in court over whether sports event contracts and political prediction markets are even legal.
Featured image: DraftKings
