DraftKings Gains Regulatory Approval to Handle Prediction Market Customer Funds

DraftKings has obtained approval from the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM). This regulatory clearance could potentially allow the company to manage customer accounts and funds on its prediction markets internally in the future.

The approval permits DraftKings to accept customer funds, provided it adheres to capital, reporting, risk management, and fund segregation requirements. The company has not yet moved customer accounts in-house and continues to work with an outside broker, Wedbush Securities.

DraftKings CEO Jason Robins has previously described the prediction market as a significant opportunity for growth. The company has been working to solidify its position in this sector, launching its proprietary DKeX exchange, utilizing technology and a federal license acquired through the purchase of Railbird Technologies.

Owning the exchange internally gives DraftKings "greater control" over the technology behind its contracts, which the company states will enable faster development and improvements to customer experience and operational economics.