DraftKings Inc. (NASDAQ:DKNG) saw its shares rise 2.5% Friday morning after unveiling a proprietary prediction markets exchange, called DKeX, that is now integrated into the unified DraftKings: Sports & Casino application.
The company framed the new exchange as a step toward greater control over content, operating economics, and the customer experience for its prediction markets business. DKeX makes use of technology and a CFTC license acquired as part of DraftKings' purchase of Railbird Technologies.
DraftKings provided early usage figures for its Predictions product. For the week ended June 21, DraftKings Predictions generated approximately $3.4 billion in annualized consumer volume and roughly $11.3 billion in annualized total trading volume. The firm said it expects continued growth through July, attributing that outlook to platform enhancements, greater adoption of newly introduced event contracts and features such as combinations, and elevated interest tied to the World Cup.
Since the Predictions product launched in mid-May, the company reports that more than 30% of customers have used combinations. The company defines combinations as a feature that allows multiple individual contracts to be bundled into a single position.
The DraftKings Sports experience is available nationally in the app, while sports event contracts are offered in 18 states. Recent platform improvements highlighted by the company include Predictions Sports Combos, expanded pre-game and in-play statistics, dedicated hubs for major events such as the World Cup, and an always-on Live tab.
DraftKings also said it has broadened its event-contract slate. Additions include MLB player and futures contracts, a No Runs First Inning baseball contract, expanded selections for NBA and NHL markets, and offerings for international sports.
On the consumer-protection front, the company has updated its Responsible Engagement toolkit. The My Budget and Controls feature serves as an in-app destination to manage deposit limits and to set personalized activity alerts.
Context and outlook
Management indicated that platform-level enhancements and new product features are expected to drive usage through the month of July, with additional stimulus anticipated from heightened interest around major sporting events. The company framed DKeX as enabling tighter integration of its prediction markets into the broader DraftKings experience while leveraging regulatory permissions and acquired technology.
Note on availability and adoption
While the DraftKings Sports experience is available nationally in the app, the company specifies that sports event contracts are available in 18 states. Adoption metrics such as the reported >30% customer use of combinations since mid-May were presented as early indicators of product engagement.