DraftKings announced the launch of DKeX, a proprietary Commodity Futures Trading Commission (CFTC)-licensed prediction markets exchange integrated into its “Sports & Casino” app. The exchange keeps prediction operations fully internal, using technology DraftKings developed and acquired to avoid third-party fees. The launch comes as prediction market volume hit $14.4 billion last week, more than 10 times what it was a year ago.
DKeX: Vertical integration meets prediction markets
DKeX is built as a vertically integrated exchange, meaning DraftKings controls the entire stack (technology, pricing, and customer experience). CEO Jason Robins said the company is “at its best when building innovative platforms that bring together technology, customer focus, and world-class execution.” Which is a good thing, since they will be having a hard competition in the coming years.
The exchange allows DraftKings to service and innovate Predictions faster, without relying on external providers. The announcement follows the company’s $200 to 300 million commitment to prediction markets this year.
DraftKings Predictions has seen explosive growth lately: $1 billion in consumer trading volume in April, $1.3 billion in May, and $3.1 billion in annualized trading volume in May, a 34 percent month-over-month increase.
The prediction market boom
The DKeX launch comes at a perfect time, with a sector-wide explosion. Weekly prediction market volume hit $14.4 billion last week (third week of June 2026), up from roughly $5 to 6 billion at the start of the year.
Open interest (OI) reached $1.6 billion, the third consecutive weekly all-time high (ATH). Non-sports volume across Kalshi and Polymarket hit $3.6 billion last week, larger than total prediction market volume (sports included) was just last year.
The FIFA World Cup is driving much of the activity, but political, economic, and geopolitical markets are growing alongside it. DraftKings’ move positions it to capture a share of this growth while maintaining full control over its infrastructure.
The competitive landscape: DKeX vs. Kalshi, Polymarket, and FanDuel
DraftKings is jumping into prediction markets right as things are heating up in the sector. Kalshi is still the big player for sports contracts, and Polymarket actually beat out both FanDuel and DraftKings in traffic during election season.
But DraftKings has a secret weapon: everyone already knows their brand, and they have a ton of loyal users. They currently own about 35 percent of the U.S. online sports betting scene, which is a bit ahead of FanDuel’s 32 percent, giving them a huge head start for their new exchange.
The gap is closing fast, though. DraftKings’ $3.4 billion in annual trading is still trailing Kalshi’s $5.1 billion from the World Cup’s first week, but they are growing like crazy. And Wall Street is definitely feeling it.
Citizens Capital Markets just bumped DraftKings’ target to $36, saying the company “is not going to lose in the prediction market opportunity.” With $200 to 300 million set aside for this and a goal of 2 to 3 million new users this year, the fight for the market is really just getting started, with players like Fanatics, FanDuel, and Novig all in the mix.
