DraftKings has launched DKeX, its in-house prediction market exchange, eight months after it bought a Commodity Futures Trading Commission (CFTC)-registered exchange, the business announced by press release Friday.
Contracts from DKeX will be available within DraftKings’ “unified” predictions, sportsbook, and casino app. Previously, DraftKings had directed prediction market customers to contracts from Crypto.com and CME.
In a press release, DraftKings said the DKeX launch allows the business to “innovate more rapidly through greater ownership over content depth, operating economics, and the end-to-end customer experience.” When working with Crypto.com or CME, customers had to pay both an exchange fee and a fee to DraftKings — the in-house launch may allow for a different fee structure.
DKeX will offer sports event contracts in 18 states, generally states that have not legalized sportsbooks.
Strong start even without in-house exchange
Even before the in-house launch, DraftKings’ prediction market offering had been off to a strong start.
In the press release announcing the DKeX launch, the business said it had processed around $11.3 billion in annualized total trading volume for the week ended June 21, and $3.4 billion in annualized “consumer volume” — volume from the taker side, which is a closer proxy to sportsbook handle — for the same period.
That would mean that overall trading volume over the week was around $216 million, or $31 million per day. Consumer volume would have been $65 million, or $9.3 million per day.
That is still a long way behind market leader Kalshi, which now consistently tops $1 billion per day in overall volume, and $400 million per day in taker-side volume.
DraftKings says that the launch of combos (also known as parlays) has helped the predictions product grow, with 30% of its users since mid-May having placed a parlay trade.
“The momentum we’ve seen on DraftKings Predictions in recent months reflects the significant progress we’ve made in delivering a more seamless and connected experience for sports fans,” DraftKings CEO Jason Robins said.
Eight months after Railbird purchase
DKeX is the exchange formerly known as Railbird. DraftKings bought Railbird in October 2025, after it gained approval from the CFTC to operate as a designated contract market (DCM), or exchange, in June.
The DKeX press release adds that DraftKings is also launching new prediction markets on MLB player props and futures, No Run First Inning bets, “broader NBA and NHL selections,” and international sports.
“The pace of development across predictions has been substantial, from expanding our event contract offerings to introducing key features like combos, which customers have quickly embraced,” Jeanine Hightower-Sellitto, DraftKings general manager of prediction markets, said. “DKeX is the latest milestone in that progression and creates new opportunities to further expand the offering ahead of some of the biggest moments on the sports calendar.”
DraftKings shares rose on the launch, up 4.8% for the day to $24.22, valuing the business at $12.0 billion. That still leaves them down 5.2% for the week, and down 50% since the end of August.
DKeX is the third exchange to go live within the space of a month. Robinhood launched its own exchange Rothera at the end of May, and the platform already processes more than $100 million in volume per day. ProphetX launched its prediction market last week, a fast turnaround after its application to be a DCM was only submitted in January. Novig also received DCM approval last week and is likely to launch soon.
