Draftkings launched DKeX on June 26, a proprietary prediction-markets exchange that shifts its contracts off CME Group and Crypto.com onto its own Commodity Futures Trading Commission (CFTC)-regulated platform. The move allows Draftkings to collect trading fees directly rather than sharing revenue with third-party infrastructure providers. The exchange is integrated into the unified Draftkings: Sports & Casino app and built on technology Draftkings acquired through its October 2025 purchase of Railbird Technologies, marking a strategic shift toward vertical integration in the prediction markets sector.
Draftkings Consolidates Infrastructure Through Railbird Acquisition
Draftkings ended its reliance on outside infrastructure by launching DKeX, folding the exchange into its unified app. Until the June 26 launch, Draftkings Predictions routed contracts through CME Group and Crypto.com, with customers paying both an exchange fee and a Draftkings fee while third-party venues kept their cut. By matching orders on its own book, Draftkings now collects those trading fees directly.
The company acquired the exchange technology and CFTC license through its October 2025 purchase of Railbird Technologies, roughly eight months before the DKeX launch. CEO Jason Robins stated in the announcement that "DKeX provides a vertically integrated foundation for Draftkings Predictions ... enabling us to move faster as we continue enhancing our unified app."
Bernstein noted in a June 29 note that the revenue share that previously left the company now stays inside it. The analyst firm observed that over roughly eight months, every major consumer-facing prediction platform moved to own both its customer base and its exchange: Robinhood built Rothera with Susquehanna, Coinbase bought The Clearing Company, and Flutter set up a dual-broker structure.
Draftkings Predictions Records $11.3B Annualized Trading Volume
Draftkings reported that its Predictions platform generated roughly $3.4 billion in annualized consumer volume and about $11.3 billion in annualized total trading volume for the week ended June 21. The company attributed the figures to a period supercharged by the FIFA World Cup.
The annualized headline figures translate to approximately $216 million in actual total volume for the week -- roughly $31 million per day, according to analysis by Ingame. This compares to market leader Kalshi, which routinely clears more than $1 billion daily.
DKeX Operates in 18 States Under CFTC Regulatory Framework
DKeX offers sports event contracts in 18 states under CFTC rules. Because its sports event contracts sit under CFTC oversight rather than state gambling law, Draftkings can offer them in states where sportsbooks are not legal.
The federal-versus-state regulatory question is being contested nationwide. The CFTC has sued multiple states to keep prediction markets beyond the reach of local gambling regulators, while some lawmakers press for tighter limits on the sector.
FAQ
What did Draftkings launch on June 26?
Draftkings launched DKeX, a proprietary prediction-markets exchange regulated by the CFTC, shifting its contracts off CME Group and Crypto.com onto its own platform integrated into the Draftkings: Sports & Casino app.
How much trading volume did Draftkings Predictions record for the week ended June 21?
Draftkings reported roughly $11.3 billion in annualized total trading volume and about $3.4 billion in annualized consumer volume for the week ended June 21, driven by the FIFA World Cup. The actual weekly volume was approximately $216 million.
Why does DKeX operate in 18 states where sportsbooks are banned?
DKeX offers sports event contracts under CFTC oversight rather than state gambling law, allowing Draftkings to operate in 18 states where traditional sportsbooks are not legal under the federal regulatory framework.
