DraftKings Launches Prediction Platforms in 38 States

Fanatics' head start in the world of prediction markets is already over.

DraftKings Sportsbook has launched its new prediction platform in 38 states. While sports predictions are not available in all of those markets, the platform is offering them in California, Florida, and Texas, which don’t have legal sports betting markets. 

“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” Corey Gottlieb, DraftKings Chief Product Officer, shared in a press release. “We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal to provide an authentic, real-time product that moves at the speed of sports. Along with our operational footprint, marketing and analytics infrastructure, and advanced in-house technology, we believe we are uniquely positioned to lead this space over the long term.” 

The launch of the platform means DraftKings’ new markets will soon go live on ESPN platforms, thanks to their recent partnership.

With its prediction platform now live, the operator has officially beaten top-rival FanDuel Sportsbook to market. The sports betting giant was the first major sportsbook to begin developing a prediction platform, but failed to launch ahead of DraftKings and Fanatics.

Tribes, Lawmakers Overplayed Their Hand

The biggest takeaway from the launch of DraftKings Predictions was that it is offering sports contracts in California, Texas, and Florida. 

California and Texas have both rejected all attempts to legalize sports betting. The former has seen tribal gambling groups refuse to negotiate (for good reason), while the latter has seen lawmakers oppose the industry on moral grounds. Now, residents in both massive markets will have a legal way to bet on sports, but without paying any state taxes.

Florida created a controversial gambling compact with the Seminole Tribe, allowing its Hard Rock Bet Sportsbook platform to be the sole operator in the market. Now, the tribe will suddenly have to compete with other sports betting leaders, which will lead the state and the tribe to lose crucial revenue. 

There are many tribes and lawmakers with valid reasons to oppose sports betting, but they are now paying for their refusal to acknowledge the larger picture. Sports betting proponents (and many state leaders) have warned that prediction markets were coming and would offer a far more dangerous form of gambling. 

With no problem gambling or fair play regulations, the fallout for the public could be far worse than what we’ve seen from sports betting. 

The possible drop in tax revenue for states will not only challenge budgets, but also likely slash funding to critical problem gambling resources.