DraftKings secures NFA and CFTC nod for New Platform.
DraftKings has secured two crucial regulatory approvals that advance its entry into federally regulated prediction markets in the United States, marking one of the company’s most significant strategic expansions to date. The National Futures Association and the Commodity Futures Trading Commission have officially approved Gus III LLC, the entity behind DraftKings Predictions, to operate as an introducing broker. This approval allows DraftKings to offer derivatives-style event contracts as part of its move beyond traditional sports betting.
The development follows DraftKings’ acquisition of Railbird Technologies, a CFTC-regulated Designated Contract Market that grants the operator a direct pathway into real-money markets tied to future events. With this structure in place, the upcoming DraftKings Predictions platform will enable users to trade yes-or-no contracts linked to finance, culture, entertainment, and other real-world outcomes. Although the company has not confirmed whether sports-related contracts will be included, it acknowledged that such offerings would require careful navigation of state regulatory rules.
The timing of DraftKings’ approval coincides with heightened competition across the sector. FanDuel has partnered with CME Group on a joint venture for event-based contracts, while Fanatics recently rolled out its own prediction platform in ten states. Meanwhile, Kalshi continues to post record trading volume, illustrating the growing mainstream interest in regulated prediction markets. Financial institutions such as ICE are also evaluating pathways into similar markets, underscoring the rapidly shifting landscape DraftKings is entering.
DraftKings describes the approval as an important milestone in its federally regulated operations, noting that the company remains committed to transparency and compliance. With regulatory momentum building, DraftKings Predictions is expected to debut soon, positioning the operator to become a major force in the expanding event-trading market.
