Shares in digital gaming company DraftKings (DKNG) blew higher today after it unveiled a new real-world predictions app.
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Real Word Trading
The standalone mobile app and web product, called DraftKings Predictions, will let users trade on the outcomes of real-world events, starting with sports and finance. It said that additional categories such as entertainment and culture are expected as the offering expands.
The new DraftKings app is registered with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association and will be available in 38 states to buy and sell event contracts.
“DraftKings Predictions is a significant milestone and reflects our ongoing commitment to delivering products that tap into the passion of our customers,” said Corey Gottlieb, Chief Product Officer of DraftKings. “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.”
Competitive Contracts Market
It means that it enters the real-money prediction markets alongside rivals such as Robinhood (HOOD) which earlier this year launched event contracts for sports outcomes, Kalshi and Polymarket.
According to Bookies.com, just twelve months ago sports event contracts were not allowed in the United States. Since they were self-certified by Kalshi ahead of Super Bowl 59 between the Kansas City Chiefs and the Philadelphia Eagles, sports event contracts now make up roughly 80% of the volume on that platform.
Prediction markets allow users to trade contracts tied to real-world outcomes, from elections and economic data to sports results and cultural events.
According to a new report from Eilers and Krejcik, prediction markets could reach as much as $1 trillion in annual trading volume by the end of the decade.
DraftKings will be expecting the new app to help keep demand for its digital gaming booming – see above.
Is DKNG a Good Stock to Buy Now?
On TipRanks, DKNG has a Strong Buy consensus based on 23 Buy and 5 Hold ratings. Its highest price target is $63. DKNG stock’s consensus price target is $44.11, implying a 27.89% upside.
