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DraftKings Predictions launched state-specific ad campaigns in four key markets that have no or limited legal sports betting.
California, Florida, Georgia and Texas are all part of the specialized DraftKings Predictions marketing push running in tandem with its national marketing campaigns, according to Aldrin Research.
These states will also get special treatment on DraftKings Gameday, a day full of promotions across all products in order to get bettors back to the platform ahead of the NFL season. DraftKings is offering free gas at selection locations in Atlanta, Dallas, Detroit, Los Angeles and Miami.
The small print explains prediction markets legality
The fine print in those campaigns leans heavily on the platform’s status as a Commodity Futures Trading Commission-regulated Futures Commission Merchant and National Futures Association member. The details describe predictions as a way to trade federally regulated event contracts on sports and other real-world outcomes.
That distinction is crucial as California and Texas, the nation’s largest untapped sports wagering markets, outlaw sports betting in every form. In the Golden State, voters overwhelmingly rejected ballot measures for legalization in 2022. California gaming tribes are preparing for another push in 2028.
The Texas legislature meets only in odd-numbered years, so the next opening in the Lone Star state comes in 2027.
Sports betting remains a hot topic in Georgia, though the issue was killed in 2026.
Florida allows mobile wagering but only via Hard Rock Bet, which is controlled by the Seminole Indians. The tribe’s compact with the state runs to 2051.
Prediction markets sidestep sports betting regulations, for now
While DraftKings Predictions lets customers buy and sell contracts under the Commodity Exchange Act rather than state gaming law, the experience is a similar one for bettors. DraftKings Predictions lists NFL game markets alongside contracts on politics, stock markets, bitcoin, entertainment awards and other professional sports.
Even though the NFL regular season does not begin until Sept. 9, contracts are now available for preseason games with futures and awards contracts listed as well. So, for users, the experience is closer to betting than to trading stocks, even if the regulatory language is different.
A ruling by the Ninth Circuit Appeals Court that holds up a ban on sports betting trades by Kalshi in Nevada sets up a likely meeting at the Supreme Court. The Third Circuit had already ruled in favor of Kalshi.
Sports event contracts dominate
Sports do not sit at the margins of prediction market platforms – they are at the forefront.
According to a Congressional report, “sports are the most popular event contract type by volume” and as of February 2026, roughly 87% of Kalshi’s $39.7 billion traded in the past year was on sports.
Not everyone in the sports betting industry is happy with the evolution of sports prediction markets. Casino trade group American Gaming Association, which represents casino and sportsbook interests, argues that sports event contracts on prediction markets “are offering illegal sports betting nationwide outside the state and tribal regulatory frameworks that protect consumers.” A coalition of 40 states is also opposed to the contracts, citing the same reasoning.
However, the floodgates have opened. Traditional sportsbooks including Fanatics, FanDuel, and others are racing to build a customer base in the four biggest closed markets while judges and regulators argue over the rules.
