DraftKings says DKeX ranks third among US prediction market exchanges

DraftKings chief executive and co-founder Jason Robins said the company's DKeX prediction market exchange has reached third place among US prediction market exchanges. Robins spoke at the NEXTPredict Summit in New York City on 22 October, according to the report. DKeX launched in late June.

DKeX is an in-house exchange, which the report said gives DraftKings full control over its prediction market economics. Robins said the platform had reached the position in a short period and was gaining share.

DraftKings Predictions, the company's broader prediction market platform, is available in 38 states, and its full suite of event contracts is available in 18 states. The report said California, Florida and Texas are among the 18, while in Colorado, New York and Pennsylvania the platform offers only financial event contracts.

Robins said DraftKings would be more prominent in prediction markets if it could offer sports event contracts in a state such as New York, but that it chose not to offer sports derivatives in states where it books traditional sports wagers. He said the alternative would have put its licences under threat.

On the regulatory debate over sports event contracts, which the report said many experts believe may be decided by the US Supreme Court, Robins said DraftKings is positioned for either outcome. He said some companies had staked a lot on one result, and that he hoped sports event contracts would be permitted over the long term.

The report said US prediction market volume is largely concentrated among two operators, with DKeX viewed as one of the most valid competitors in the next tier, and that data indicate the exchange took modestly higher market share in September.