Shares of DraftKings (NASDAQ: DKNG) climbed on Friday, June 26, following the launch of its long-awaited proprietary exchange, DKeX. The new platform is intended to improve the financial performance of the company’s rapidly expanding prediction markets business.

Since launching in December, DraftKings Predictions has relied on CME Group’s derivatives exchange to facilitate trading, with Wedbush acting as its Futures Commission Merchant (FCM).

The introduction of DKeX gives DraftKings greater control over the infrastructure and economics of its prediction market operations. It also addresses investor questions about the company’s plans for Railbird Technologies, which it agreed to acquire last October.

“DKeX leverages the technology and Commodities Futures Trading Commission (CFTC) license from DraftKings’ acquisition of Railbird Technologies,” the company stated.

DraftKings has also confirmed that DKeX will be incorporated into its “Super App.” The platform brings together several services, including online sports betting, iGaming, lottery courier offerings, and prediction markets, where permitted by state regulations.

DraftKings Launches DKeX at a Favorable Time

The timing of DKeX’s debut could benefit DraftKings as trading activity on its prediction platform accelerates, partly driven by increased interest surrounding the World Cup. Company figures highlight the scale of that growth.

For the week ending June 21, DraftKings Predictions recorded an annualized total trading volume of $11.3 billion and an annualized customer trading volume of $3.4 billion.

The Boston-based company anticipates further expansion throughout July, supported by ongoing platform improvements, wider adoption of new event contracts, features such as combinations, and rising enthusiasm for the World Cup.

“Since launching in mid-May, more than 30% of customers have used combinations, which allow multiple individual contracts to be bundled into a single position, highlighting strong demand for a customizable, sports-first prediction markets experience,” DraftKings added.

The DKeX launch also coincides with an expansion of DraftKings Predictions’ combination and parlay offerings, alongside a broader selection of sports-related event contracts. New additions include player-specific and futures contracts, No Runs First Inning (NRFI) markets, and additional derivatives covering the NBA, NHL, and international sporting events.

DraftKings Gains Momentum in Prediction Markets

Although the U.S. prediction market sector remains relatively young, some analysts believe it could eventually consolidate around five major competitors, with DraftKings potentially becoming one of the leading participants. Its established brand recognition and trading capabilities could support that position.

There is also a potential long-term financial opportunity. One analyst estimates that DraftKings Predictions could add between $10 billion and $14 billion to DraftKings’ enterprise value by 2030 if the business captures a 30% share of the market.

“The momentum we’ve seen on DraftKings Predictions in recent months reflects the significant progress we’ve made in delivering a more seamless and connected experience for sports fans,” DraftKings CEO Jason Robins added.