"DraftKings has made its focus on prediction markets moving forward clear in a letter to its shareholders, published on Thursday (February 12), alongside the company's quarterly report. As well as collaborating with Crypto.com to spawn the prediction markets business arm and launching a dedicated app, DraftKings has now confirmed plans to launch market-making as "a core part of the customer experience." That means it will offer both buy (bid) and sell (ask) prices for event contracts, much like Kalshi and Polymarket."
""We have been building DraftKings for more than 14 years," reads the letter. "When a new growth lane opens, we move fast and execute at scale. Predictions is the most exciting new growth opportunity we have seen since PASPA was struck down in 2018. Early signals are strong. The letter goes to note that Super Bowl Sunday saw DraftKings Predictions with the second most app downloads in its category, as well as delivering three times its prior record for daily trading volume.""
""Contract listings, fees, market structure, and distribution matter, but tight two-way markets with depth are what attract participants," reads the letter. "Exchanges seed liquidity by incentivizing market-makers, and DraftKings can lead market-making for sports contracts because we model sports probabilities exceptionally wel"
DraftKings is expanding into prediction markets by launching a market-making arm that will provide both bid and ask prices for event contracts. The company is collaborating with Crypto.com and launching a dedicated app for the predictions business. DraftKings plans to deploy growth capital into the sector while stating prediction markets will not disrupt its existing online sports betting operations. Super Bowl Sunday saw DraftKings Predictions record the second most app downloads in its category and triple its prior record for daily trading volume. The company emphasizes that tight two-way markets with depth attract participants and cites its sports probability models as a competitive advantage for market-making.
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