Super App gateway to prediction markets — CME Group infrastructure, low per-contract fees, Railbird DCM on the roadmap
Trading Fee
$0.01/contract/side + exchange fees (~$0.02+ round-trip)
States Available
38 states
Launched
December 19, 2025
Regulation
CFTC IB via CME DCM
DraftKings leverages its massive user base with a Super App that merges predictions alongside sports and casino. Railbird DCM in 2026 will add self-operated exchange capability.
Super App convenience
DFS, sportsbook, casino, and prediction markets in one app — no new account needed for existing DK users
38-state availability
Broadest geographic reach of any sports-betting-adjacent prediction market platform
Low per-contract fee
$0.01 per contract per side is competitive for high-volume sports trades
CME Group infrastructure
Institutional-grade matching engine and clearing on an established derivatives exchange
Railbird DCM roadmap
Own exchange expected post-approval — will expand market selection and reduce dependence on CME
Exchange fees are variable
CME Group adds fees on top of DraftKings' $0.01, making true cost harder to predict
Separate wallet from Sportsbook
Predictions funds are in a distinct wallet — not interchangeable with DraftKings Sportsbook balance
Thin on economics and politics
Market depth for policy, CPI, and Fed events lags well behind Kalshi
Introducing Broker model
DraftKings is an IB, not a DCM — you're trading through CME infrastructure, not a DraftKings-owned exchange (yet)
Railbird DCM not yet live
Self-operated exchange announced March 2026 but pending CFTC approval
See how DraftKings stacks up
Platform overview and regulatory structure
Super App combining sports, predictions, casino, and lottery
Launched on December 19, 2025, DraftKings Predictions is a CFTC-regulated prediction market exchange built on CME Group infrastructure, with Crypto.com CDNA added as a second exchange connection in February 2026. DraftKings operates as a registered CFTC Introducing Broker (IB) and NFA member, with markets listed on CME Group's derivatives exchange — the same infrastructure used by FanDuel Predicts.
The key differentiator is the Super App model: DraftKings users can access DFS contests, sportsbook wagering, casino games, lottery, and prediction markets from a single account and app. This creates a frictionless onramp for DraftKings' tens of millions of existing users — no new KYC, no separate app, no new payment setup required.
On October 21, 2025, DraftKings acquired Railbird Exchange LLC, which already holds a CFTC Designated Contract Market (DCM) license (approved June 2025). At DraftKings Investor Day on March 2, 2026, the company announced plans to integrate Railbird as a self-operated exchange — but this integration was not yet live as of April 2026.
DraftKings Predictions ≠ DraftKings Sportsbook
They share an app but operate under completely different regulatory frameworks. Sportsbook uses state gaming licenses (30 states + D.C.). Predictions uses federal CFTC oversight via CME Group (38 states). The wallets are separate and not interchangeable.
Regulatory Structure
DraftKings is registered as a CFTC Introducing Broker and NFA member via Gus III LLC. Markets currently listed on CME Group exchange (and Crypto.com). Gus III LLC filed a pending FCM application on February 27, 2026 (NFA BASIC), upgrading from IB status. Railbird Exchange LLC (acquired Oct 2025) DCM integration announced at Investor Day March 2, 2026 — not yet live as of March 2026.
Available contract types and state access
DraftKings leads with sports markets, leveraging its DFS and sportsbook user base. Economics, finance, and culture categories are growing but lag behind Kalshi in depth.
Per-contract costs and exchange fee breakdown
DraftKings charges $0.01 per contract per side — meaning $0.01 on entry and another $0.01 on exit or resolution, for a ~$0.02 round-trip cost from DraftKings itself. However, CME Group exchange fees are added on top and vary by contract type and volume.
In plain English: A penny when you buy, a penny when you sell, plus a small exchange fee from CME Group. Buy 100 contracts = about $2 total in fees round-trip.
Per contract per side
CME Group rates
DK only; + exchange fees
What this means for you: DraftKings' own fee is just a penny per contract each way. The CME exchange fee varies, but expect roughly $0.02 or more total per contract round-trip when both are combined.
Example for 100 contracts at a $0.60 price (resolves to $1.00):
| Item | Amount |
|---|---|
| Stake (100 contracts × $0.60) | $60.00 |
| DK entry fee (100 × $0.01) | $1.00 |
| CME exchange fee (variable) | Varies |
| Payout if YES (100 × $1.00) | $100.00 |
| DK exit fee on resolution (100 × $0.01) | $1.00 |
| Net profit (before exchange fees) | ~$38.00 |
In plain English: On a $60 bet that wins, DraftKings takes about $2 in trading fees ($1 on the way in, $1 on the way out). CME exchange fees are extra on top of that.
Hidden Cost: CME Exchange Fees
CME Group exchange fees are variable and add to the $0.01 DraftKings charge. Check your order confirmation before trading to understand the total cost — especially on high-volume or exotic contract types.
Funding methods and wallet separation
DraftKings Predictions uses a separate wallet from DraftKings Sportsbook. Existing DraftKings users will have their identity already verified, but need to fund the Predictions wallet independently. Minimum deposit is $5.
| Method | Timeframe | Fee |
|---|---|---|
| Bank transfer (ACH) | Instant | Free |
| Debit card | Instant | Free |
| DK Wallet | Instant | Free |
Separate wallet — not linked to DraftKings Sportsbook
DraftKings Predictions and DraftKings Sportsbook operate under different regulatory frameworks (CFTC vs state gaming). Their wallets are separate and funds cannot be transferred between them directly. Fund each independently.
FCM upgrade, Railbird DCM, and exchange partnerships
DraftKings is one of the most aggressive platform builders in the prediction market space, actively working to move from Introducing Broker status to full exchange ownership and FCM registration. This is a multi-step build that changes DraftKings' long-term positioning.
DraftKings' operating entity for prediction markets, Gus III LLC d/b/a DraftKings Predictions, filed a pending FCM (Futures Commission Merchant) application with the NFA on February 27, 2026. This is an upgrade from its current IB (Introducing Broker) status. FCM registration would give DraftKings direct clearing authority rather than routing through an intermediary FCM like Wedbush Securities.
NFA BASIC — Gus III LLC ProfileDraftKings acquired Railbird Exchange LLC on October 21, 2025. Railbird already holds a CFTC Designated Contract Market (DCM) license (approved June 2025). At DraftKings Investor Day (March 2, 2026), the company announced plans to integrate Railbird as its self-operated exchange, targeting integration before end of 2026. When live, DraftKings will list its own contracts rather than routing through CME Group.
Railbird Acquisition (CNBC)DraftKings struck a deal allowing ESPN to offer its prediction platform, significantly expanding distribution reach to ESPN's massive sports audience.
ESPN Data PartnershipDraftKings expanded its prediction markets catalog through a deal with Crypto.com (CDNA), adding new market categories beyond what CME Group offers. This dual-exchange model (CME + CDNA) gives DraftKings broader catalog depth while Railbird approval is pending.
DraftKings × Crypto.com Catalog ExpansionInfrastructure Progression
Market depth and order execution quality
DraftKings benefits from millions of existing DFS and sportsbook users who provide an organic liquidity pool for sports-event contracts. CME Group's matching engine provides institutional-grade order processing. Economics and politics markets are thinner and more prone to wide spreads.
Spreads: ~1–3¢
Spreads: ~3–8¢
Spreads: 8–20¢+
As a newer platform (December 2025), total open interest is still building. Use limit orders on thinner books and check depth before entering large positions. Railbird DCM approval could significantly improve liquidity by enabling DraftKings to list more contract types independently.
Regulatory safeguards and fund custody
CFTC oversight and CME Group clearing provide real structural safeguards. Fund custody and the Introducing Broker model differ from Kalshi's direct DCM model in ways that matter for risk-conscious traders.
Order matching, clearing, and settlement run on CME Group derivatives exchange — the same infrastructure used by professional futures markets worldwide.
DraftKings is supervised by the CFTC through its IB registration and NFA membership, providing federal-level oversight.
One of the largest sports tech companies in the U.S. provides platform stability and significant compliance resources.
As an IB, DraftKings routes orders to CME Group. You are not transacting directly on a DraftKings-owned exchange. This changes counterparty and resolution dynamics until Railbird DCM is live.
Customer funds are held by Wedbush Securities, the registered FCM. Trades clear through CME Group's exchange infrastructure. Different from Kalshi's directly segregated accounts model.
The self-operated exchange confirmed at Investor Day (March 2, 2026) requires CFTC DCM approval before DraftKings can list its own contracts. Targeted by end of 2026.
For a deeper look at how resolution works across platforms, see the Resolution Dispute Audit.
Tax treatment and reporting
Gains from DraftKings Predictions are treated as ordinary income, not capital gains. DraftKings issues 1099 forms when applicable under federal and state reporting requirements.
Tax disclaimer
This is not tax advice. Tax treatment depends on your individual circumstances and jurisdiction. Consult a qualified tax professional.
Head-to-head comparison with Kalshi and FanDuel
| Feature | DraftKings | Kalshi | FanDuel Predicts |
|---|---|---|---|
| Regulation | CFTC IB via CME DCM | CFTC DCM + DCO | CFTC via CME Group |
| U.S. Access | 38 states | Most states | 18 sports / 50 non-sports |
| Trading Fees | $0.01/contract/side + exchange fees (~$0.02+ round-trip) | ≤1.75¢/contract (formula-based) | 2% of potential payout at checkout |
| Sports Markets | Yes (core) | Limited | Yes (core) |
| Political Markets | Thin | Deep | Thin |
| Liquidity | High on sports | High on economics/politics | High on marquee sports |
| Fund Safety | Custodial (via Wedbush Securities FCM; CME exchange) | Segregated | Segregated (FCM) |
| App Model | Super App (DFS + SB + casino + PM) | Standalone | Standalone |
Fee comparison in plain English: DraftKings charges $0.01/contract/side + exchange fees (~$0.02+ round-trip). Kalshi uses a formula-based fee. FanDuel takes 2% of your payout. Each model affects your bottom line differently depending on trade size.
See also: Full platform directory and Kalshi platform guide.
Ideal user profiles and use cases
No new account or KYC required — seamless onboarding from the existing DK Super App.
Familiar interface, sports-focused market selection, and liquidity built from the DFS user base.
The Super App model means all your gaming activity lives in one place with one deposit.
38 states available via CME Group — wider than most alternatives.
Variable CME exchange fees on top of the $0.01 DK fee make cost modeling more complex than Kalshi's formula.
Market depth for Fed, CPI, and policy events lags well behind Kalshi's dedicated coverage.
As an IB, DraftKings routes to CME — not a DraftKings-owned exchange. Railbird DCM approval is pending.
Kalshi holds funds in segregated accounts at regulated banks. DraftKings routes through Wedbush Securities (FCM) + CME clearing — a different model.
Key takeaways and platform positioning
DraftKings Predictions is the Super App play: if you already live inside the DraftKings ecosystem, it's the lowest-friction entry into CFTC-regulated prediction markets. The breadth of sports market coverage, 38-state availability, and the existing user base all work in its favor. The per-contract fee structure is competitive for sports-volume trading.
In plain English: A penny when you buy, a penny when you sell, plus a small exchange fee from CME Group. For most casual sports traders, these fees are minimal relative to potential payouts.
The key tradeoffs: CME exchange fees add variable cost beyond the $0.01 DK charge, economics and political market depth is thin compared to Kalshi, and the Introducing Broker model means you're not on a DraftKings-owned exchange yet. The Railbird DCM integration — once approved — could substantially change the platform's capability and market breadth. Watch for that milestone.
Last updated: April 2026. This overview is for informational purposes only and does not constitute financial advice.
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