DraftKings announced Friday that it has officially launched DKeX, a proprietary exchange designed to power its growing prediction markets business. The exchange is integrated directly into the company’s unified Sports and Casino app and gives DraftKings greater control over its technology, product offerings, and customer experience.
The launch comes as prediction markets continue to gain popularity, with DraftKings reporting billions of dollars in trading activity and growing customer engagement across its Predictions platform.
DraftKings Deepens Its Bet on Prediction Markets
The introduction of DKeX marks the next stage in DraftKings’ expansion into prediction markets, a business it entered in late 2025. Previously, the company operated more as a broker and relied on external marketplaces for trade execution. By launching its own exchange, DraftKings can now directly manage and list event contracts on its platform.
The exchange operates as a CFTC regulated designated contract market, allowing DraftKings to self certify various event contracts, including sports related products such as moneylines and point spreads.
According to Chief Executive Officer and Co-founder Jason Robins, the company is building a vertically integrated platform that gives it greater control over the technology and economics behind its prediction offerings.
“DraftKings is at its best when building innovative platforms that bring together technology, customer focus, and world class execution to shape the future of sports engagement.
Jason Robins
Chief Executive Officer and Co-founder – DraftKings
Trading Activity Continues to Climb
DraftKings said its prediction business generated approximately $3.4 billion in annualized consumer volume and around $11.3 billion in annualized total trading volume for the week ended June 21.
The company also noted that more than 30 percent of customers have used combinations, a feature launched in mid May that allows multiple contracts to be bundled into a single position.
DraftKings expects activity to continue rising through July, driven by product improvements, expanding event contract offerings, and increased interest surrounding the World Cup, which has helped fuel trading activity across the broader prediction market industry.
Expanding Beyond Sports Betting
DKeX is designed to support a broader range of event contracts across sports, finance, entertainment, and culture. Unlike traditional sports betting products that are regulated at the state level, these contracts fall under federal oversight through the Commodity Futures Trading Commission.
This structure could allow DraftKings to offer a more unified nationwide product while avoiding some of the limitations associated with state by state sports betting regulations.
The exchange also positions DraftKings against a growing list of competitors in the prediction markets sector. Industry leaders such as Kalshi and Polymarket have seen trading volumes surge, while companies including Coinbase and Meta are also exploring opportunities in the space.
Notably, DKeX does not include crypto native features such as governance tokens or decentralized finance tools, instead relying on traditional exchange infrastructure.
Railbird Acquisition Powers DKeX
The new exchange is built using technology and a CFTC license obtained through DraftKings’ acquisition of Railbird Technologies in October 2025.
By owning its exchange infrastructure, DraftKings can avoid sharing economics with third party contract marketplaces and potentially improve profitability as the business scales.