DraftKings opens prediction markets exchange as volume tops $3B

DraftKings launched a prediction markets exchange after cumulative user trading volume on its platform exceeded $3 billion. The exchange lets account holders trade contracts tied to the outcomes of future events and settles positions when those events conclude.

Trading will use existing DraftKings accounts and the platform's identity verification and payments systems. Markets span a range of event types and allow users to take positions on measurable outcomes and price movement instead of placing traditional bets. The exchange operates with order books and posted prices that reflect supply and demand for each contract.

Access to the exchange will be limited to jurisdictions where DraftKings meets state and federal regulatory and licensing requirements. Markets and features will be enabled in specific locations after the company secures required approvals.

DraftKings plans to roll out additional markets and product features as liquidity and user demand grow. The firm will monitor market liquidity and may engage market makers or partners to support trading on new listings.

DraftKings began as a daily fantasy sports operator and expanded into regulated sports betting and digital contests. The company is publicly traded and has used its technology, payments infrastructure and customer base to add wagering and trading products.