DraftKings announces plans to launch market-making arm for predictions sector

0 Views

Constructing on its pivot into prediction markets, playing big DraftKings has confirmed it should launch a market-making arm within the new sector.

DraftKings has made its deal with prediction markets shifting ahead clear in a letter to its shareholders, revealed on Thursday (February 12), alongside the corporate’s quarterly report. In addition to collaborating with Crypto.com to spawn the prediction markets enterprise arm and launching a dedicated app, DraftKings has now confirmed plans to launch market-making as “a core a part of the shopper expertise.” Meaning it should provide each purchase (bid) and promote (ask) costs for occasion contracts, very similar to Kalshi and Polymarket.

DraftKings is planning to "deploy progress capital" into prediction markets but additionally taking pains to indicate that prediction markets aren't really disrupting their present on-line sports activities betting enterprise: pic.twitter.com/PwkcKCFM1X

— Geoff Zochodne (@GeoffZochodne) February 12, 2026

“We’ve been constructing DraftKings for greater than 14 years,” reads the letter. “When a brand new progress lane opens, we transfer quick and execute at scale. Predictions is essentially the most thrilling new progress alternative we’ve seen since PASPA was struck down in 2018. Early alerts are robust.”

The letter goes to notice that Tremendous Bowl Sunday noticed DraftKings Predictions with the second most app downloads in its class, in addition to delivering 3 times its prior file for day by day buying and selling quantity.

Subsequent steps for DraftKings

In a while within the shareholders letter, DraftKings confirmed it will be launching market-making in an effort to proceed its progress within the predictions market area.

“Contract listings, charges, market construction, and distribution matter, however tight two-way markets with depth are what entice members,” reads the letter. “Exchanges seed liquidity by incentivizing market-makers, and DraftKings can lead market-making for sports activities contracts as a result of we mannequin sports activities chances exceptionally effectively and have the infrastructure to supply liquidity throughout a broad spectrum of contracts.”

The objective is to create two income streams for DraftKings within the predictions market area: transaction charges, by way of the DraftKings Predictions app; and buying and selling economics from market-making and proprietary buying and selling, each by itself change and probably on different exchanges.

Nevada intensifies crackdown, stripping DraftKings and Flutter licenses over prediction markets – https://t.co/J0CXPmb1UK

— Suswati Basu (@suswatibasu) November 13, 2025

DraftKings’ transfer follows Nevada gaming regulators’ crackdown on prediction markets in November 2025, pulling key licenses from them, whereas the state continues to battle in court docket over whether or not sports activities occasion contracts and political prediction markets are even authorized.

Featured picture: DraftKings

The submit DraftKings announces plans to launch market-making arm for predictions sector appeared first on ReadWrite.

Trending Merchandise