DraftKings Self-Certifies Parlay Contracts for In-House Exchange
DraftKings is taking another step towards running its prediction markets business entirely in-house by self-certifying parlay contracts for its DKeX exchange. This move allows the company to settle combination bets internally, rather than routing them through third-party exchanges like Crypto.com.
The filing with the Commodity Futures Trading Commission (CFTC) covers a 'combos' contract titled 'Will all [outcomes] occur?' which settles based on the joint outcome of two or more constituent contracts. This self-certification is the standard CFTC process that allows a designated contract market to list new products without seeking prior agency approval.
DraftKings launched DKeX, its own CFTC-licensed exchange, on June 26. The company acquired Railbird Technologies last October for up to $250 million, with a large chunk structured as performance-based incentives. By bringing exchange operations in-house, DraftKings now collects trading fees directly instead of splitting them with outside partners.