DraftKings Predictions: how it works, fees, and resolution
Event contracts on sports, politics, and finance through DraftKings' own CFTC-regulated exchange, with web and app trading.
Official provider profile
Market model
Exchange
Collateral
USD within the DraftKings account system; same login as Sportsbook, Casino, and DFS.
Access
18+; eligibility and market availability vary by state
Topics
Sports, Politics
The beginner version
What does a prediction-market position mean?
A market asks a defined question about a future event. A binary market may offer YES and NO shares; a multi-outcome market can offer several mutually exclusive answers. Traders buy and sell these shares before the market closes. A price such as $0.63 can be read as an approximate 63% market-implied probability, but it is not a promise that the event will happen.
When the event is ready for determination, the provider follows the market’s published source and rules. If one outcome wins, its share may redeem for the stated payout—often $1—while losing shares may become worthless. The exact rules, source, close time, exceptions, fees, and dispute process matter more than a short title.
Read the lifecycle
1. Define
Question, outcomes, close time, source, and edge cases are published.
2. Trade
Orders meet on a book or through a market-making pool; price moves as information and demand change.
3. Resolve
The provider or its oracle follows the stated rules and determines the result.
4. Redeem
Winning outcome shares receive the documented payout; losing shares do not.
Source-backed profile
Fees, settlement, and access
Fees: Transaction fees apply per contract with additional exchange fees possible; exact schedule published in platform disclosures. Not publicly disclosed in a single fee table. Source ↗
Resolution: Correct predictions settle at $1 per contract, incorrect at $0. Contracts can be held to settlement or sold early. Rules source ↗
Availability: 48 states plus Washington DC and US territories; excludes Maine and New Hampshire. Sports contracts in 18 states, mainly where DraftKings does not run its sportsbook.
Verification and eligibility: Complete account verification and confirm your state's sports-contract eligibility before trading.
Risks to understand
Event contracts can lose their full purchase price. Only market orders are supported, with no visible order book or price history. Per-contract fees can erode small trades. Not available in Maine or New Hampshire.
Potential strengths
- Web and app trading, not app-only
- Same login as Sportsbook, Casino, and DFS
- Own CFTC-regulated exchange (DKeX)
- Combos feature bundles multiple contracts
Trade-offs
- Market orders only, no visible order book
- Sports limited to 18 states
- Per-contract fees hit small trades hardest
- Not available in Maine or New Hampshire
FAQ
Questions beginners ask
How do DraftKings Predictions markets work?＋
DraftKings Predictions presents a question about a future event and lets users trade one or more possible outcomes. The displayed price can be read as a market-implied probability, not a guaranteed forecast; the market rules define the final result.
How are DraftKings Predictions outcomes decided?＋
Correct predictions settle at $1 per contract, incorrect at $0. Contracts can be held to settlement or sold early.
What fees does DraftKings Predictions charge?＋
Transaction fees apply per contract with additional exchange fees possible; exact schedule published in platform disclosures. Not publicly disclosed in a single fee table.
What should beginners check before using DraftKings Predictions?＋
Event contracts can lose their full purchase price. Only market orders are supported, with no visible order book or price history. Per-contract fees can erode small trades. Not available in Maine or New Hampshire. This directory is educational comparison content, not a personal recommendation or betting advice.