DraftKings Launches DKeX, a Proprietary Prediction Market Exchange Built on $3.4 Billion in Annualized Consumer Volume

DraftKings launched DKeX, its own proprietary prediction market exchange, on June 26, integrating it directly into the DraftKings: Sports and Casino app and completing the company’s shift to a fully vertically integrated prediction market business. The launch means DraftKings now controls every layer of its DraftKings Predictions product — from the contracts it lists to the fees it collects on every trade — without relying on outside exchange infrastructure.

DKeX is powered by technology and a CFTC license obtained through DraftKings’ acquisition of Railbird Technologies. At the time of launch, DraftKings Predictions was generating approximately $3.4 billion in annualized consumer volume and $11.3 billion in annualized total trading volume for the week ending June 21, driven in part by growing World Cup activity across the platform’s sports event contracts.

The Case for Owning the Exchange

Before DKeX, DraftKings operated its Predictions product through partnerships with the CME Group and later Crypto.com, which meant exchange fees generated by trading activity were flowing to third parties rather than to DraftKings. Those fees, collected on every contract traded on the platform, represent one of the highest-margin revenue streams in financial services — with gross margins approaching 95%, according to analysts at Citizens Bank.

By owning the exchange outright, DraftKings gains access to that revenue. The company’s fee structure is tiered: market-takers pay between $0.005 and $0.01 per contract depending on the contract price, while market-makers pay a flat $0.0025 per contract — terms broadly in line with those used by DraftKings competitors in the space. Citizens analysts project the exchange business could generate $243 million in total market-making revenue by 2027.

DraftKings CEO Jason Robins has been bullish on the company’s prediction market trajectory, suggesting DraftKings could become one of the world’s top three market-makers in the space given its data science capabilities and pricing expertise. DKeX is currently available for sports event contracts in 18 states.

Strong Initial Reaction

DraftKings stock jumped 11% on the announcement, rising to approximately $27.59 per share. The reaction reflects investor optimism about the long-term revenue potential of owning the exchange, even as the company has cautioned that its prediction market investments could generate category losses of $200 million to $300 million in 2026. Some Wall Street estimates have put that figure even higher.

The launch arrives as the prediction market industry is experiencing extraordinary growth. Monthly trading volume across major platforms has surged from roughly $28 billion in mid-2025 to nearly $220 billion a year later, with sports contracts driving the bulk of that increase. DraftKings expects continued momentum through July as the World Cup’s knockout stages continue to generate strong trading activity. For sports bettors who have been curious about prediction markets, platforms like DraftKings Predictions offer an integrated experience directly inside the same app used for traditional sportsbook wagering. The DKeX launch deepens that integration and positions DraftKings as a major long-term force in the prediction market landscape.