DraftKings has gotten the green light at the federal level to be able to go ahead with its DraftKings Predictions product in the United States.
The product, which operates under Gus III LLC, is now a part of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) registries as an introducing broker and an approved swap firm since December 4th.
DraftKings Predictions will operate under the US derivatives regulatory framework, SteelSports, having decided against filing as a traditional sportsbook, as per the new structure.
Simply put, the entity acts as an introducing broker, may take customer orders, but it cannot hold client funds. Instead, it will be a front-end layer that directs the customer activity to the appropriate contract markets and other licensed entities.
Additionally, Railbird will be DraftKings’ in-house designated contract market (DCM) following the company’s acquisition of the CFTC-licensed entity in October. However, despite being approved as a DCM, Railbird has yet to hit the US market.
How DraftKings Predictions Fits Into the Prediction Market Landscape
The two statuses of DraftKings Predictions as an introducing broker and a swap firm give it the possibility of offering event contracts via different exchanges other than Railbird. This is in line with the company’s earlier statements that it would distribute its prediction markets through several federally regulated venues.
Before the Gus III registration replaced the Gus II Holdings LLC filing in June 2025, DraftKings initially made its filing with the NFA under Gus II Holdings LLC in June 2024. CEO Jason Robins publicly confirmed in October that the company planned to enter prediction markets, which was his first indication after the announcement.
DraftKings communicated in November that it would provide sports event contracts in the regions where sports betting is not yet authorised.
DraftKings is the latest in a long line of gaming and wagering operators to take the plunge into federally regulated prediction markets.
After receiving NFA approval as a futures commission merchant in September, PrizePicks launched operations the following month.
FanDuel is collaborating with CME Group, an approved designated contract market and futures commission merchant, and is planning to launch its product at the beginning of next year.
After the acquisition of Paragon Global Markets, Fanatics has unveiled a standalone prediction markets app, whereas Underdog, in partnership with CFTC-regulated operator Crypto.com, offers sports event contracts.
Despite the fact that the company excluded that a public launch would be possible in the shortest time, DraftKings has not announced any date for the release of DraftKings Predictions.
DraftKings has left the American Gaming Association in anticipation of its prediction market launch and has also launched Spanish-language functionality, which is aimed, among other things, at users in big non-sports-betting states such as California and Texas.
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