DraftKings is planning to roll out a new “super app” that combines several of its gaming products into a single platform – and the launch could introduce sports prediction markets to Texans even though traditional sports betting remains illegal in the state.
The Boston-based operator recently revealed plans for DraftKings Sports & Casino, an all-in-one app designed to house the company’s sportsbook, iGaming, lottery, and prediction markets products under a shared wallet and account.
The sportsbook portion of the platform will only function in states where online sports betting is authorized. But DraftKings’ prediction markets are structured differently, allowing the company to offer sports-related contracts in jurisdictions that have not legalized traditional wagering, including Texas.
Sports outcomes traded as contracts
Prediction markets allow users to buy and sell contracts tied to the outcome of events. Instead of placing a traditional bet against the sportsbook, participants purchase “yes” or “no” positions on outcomes such as whether a team will win a game.
The market operates on a peer-to-peer basis, meaning users trade contracts with one another rather than wagering directly against the operator.
Because prediction contracts are typically treated as financial instruments overseen at the federal level, they can operate outside the state-by-state framework that governs traditional sports wagering.
That regulatory distinction opens the door for platforms like DraftKings to offer sports-related prediction markets in states where sportsbooks cannot legally accept wagers.
Under the company’s super app model, the platform will automatically adjust which products are available depending on a user’s location. In states with legal sports wagering, such as New Jersey or New York, users will see the full sportsbook interface.
In states like Texas, the sports section would instead display prediction-style markets on games and other events.
DraftKings’ investor materials show the predictions interface closely resembles its sportsbook product. Rather than building same-game parlays, users could combine multiple prediction contracts into what the company calls “combos.”
Beyond sports, the marketplace could also include contracts tied to political outcomes or pop culture events.
Daily fantasy remains separate
One product that will not be folded into the super app is DraftKings’ daily fantasy sports platform.
The company confirmed that DFS contests will remain available through a separate standalone app rather than being integrated into the new platform.
That means Texans who currently play DraftKings Pick6 would continue using the existing fantasy product independently from the predictions marketplace.
Texas sports wagering still uncertain
Texas remains one of the largest states without legalized sports wagering. Efforts to pass legislation in recent years have stalled, and any potential legalization would likely require both legislative approval and support from voters.
In the meantime, prediction markets could provide companies like DraftKings a way to engage sports fans in Texas while traditional sportsbooks remain off the table.
The company has identified prediction markets as a major long-term growth opportunity as it expands the product across the country.
