DraftKings has launched DKeX, a proprietary prediction markets exchange integrated into its unified DraftKings: Sports & Casino app, as annualized consumer volume on its DraftKings Predictions product reaches approximately $3.4bn.
The exchange gives DraftKings direct control over the technology infrastructure supporting its prediction markets offering. DKeX operates using the technology stack and CFTC licence acquired through Railbird Technologies. The company said the move will enable faster product development and improved operating economics.
For the week ended 21 June, DraftKings Predictions recorded approximately $11.3bn in annualized total trading volume. DraftKings attributed its growth outlook to product updates, broader event contract adoption and demand related to the FIFA World Cup.
Jason Robins, CEO and Co-Founder of DraftKings, said: "DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster as we continue enhancing our unified app."
Jeanine Hightower-Sellitto, DraftKings SVP and General Manager of Prediction Markets, said: "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. 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."
Recent additions to DraftKings Predictions include MLB player and futures contracts, No Runs First Inning baseball markets, expanded NBA and NHL selections and international sports. Separately, DraftKings has added World Cup hubs, a Live tab and enhanced pre-game and in-play statistics to its Sports app.
DraftKings also updated its responsible engagement tools through a new in-app destination called My Budget and Controls, which allows customers to manage deposit limits and set personalized activity alerts.
In May, DraftKings reported a 34% month-on-month increase in annualized predictions trading volume
