Plans for a predictions product may be farther along at DraftKings than it seems.
DraftKings has a pending application with the National Futures Association, which has served as the regulator for the Commodity Futures Trading Commission since 1982. The application was first reported by industry newsletter The Closing Line.
Not much is known about what DraftKings Predict could offer and when that might be, but it is important to note that this application was not done in response to Crypto.com, Kalshi or Robinhood’s interest in Super Bowl futures. The pending application for DraftKings Predict is dated July 30, 2024.
DraftKings declined to comment when reached by LSR.
DraftKings, Robins bullish on predictions
The gaming operator’s CEO, Jason Robins, has talked about prediction markets in two different settings this year.
Robins said the company is watching everything with prediction markets “very actively” on its year-end earnings call.
“It’s certainly something that we have keen interest in seeing how it plays out,” he added.
Robins also mentioned at a Morgan Stanley conference that prediction markets are “definitely more on the opportunity side” than being a risk.
CFTC hearing upcoming
In both circumstances, Robins noted the upcoming hearing the CFTC will hold concerning “certain sports-related event contracts.”
The goal of the public roundtable is to “develop a robust administrative record with studies, data, expert reports, and public input from a wide variety of stakeholder groups to inform the Commission’s approach to regulation and oversight of prediction markets, including sports-related event contracts.”
There are “several key obstacles” that must be addressed, including legal arguments that sports constitute gaming and therefore would not be allowed to trade as prediction markets.
“[The ruling will be] a big moment that we’re all still kind of waiting to see what happens on,” Robins said.
