DraftKings Launches Major Prediction Market Ad Campaign

The NFL season is nearly upon us, and with that, DraftKings has launched an aggressive advertising campaign for its newest product, DraftKings Predictions. The campaign launched on Aug. 24 and highlights the prediction market app, which is available to residents of states where access to the best sports betting apps remains illegal. 

By using event-contract frameworks, it can establish its brand in states like California, Texas, Florida, and Georgia. It will ultimately be available in 18 states where the sportsbook app does not operate. 

One of the best sports betting sites, the sports betting giant is regulated in 27 states, but 35% of Americans still lack access to online sports betting. Rather than waiting for legislative changes, which aren't expected soon, DraftKings is using its CFTC-aligned prediction market application to enter these dark states. Georgia's House Resolution 450, which would have legalized sports betting, failed 63-98 earlier this year. 

Entry into those markets, which include cities such as Los Angeles, Houston, Atlanta, and Miami, will allow DraftKings to access consumer data in the years ahead of potential legal sports betting. If those legislative changes come in the future, the company will already have a built-up user base.

Looking to grab a foothold in a crowded prediction market apps scene, the promo tional campaign offers new users $200 in "Prediction Dollars" after placing an initial $5 trade on real-world events. 

DraftKings has refinanced $1.45 billion - via a $700 million Term Loan B and $750 million revolver - primarily to repurchase its 2028 convertible notes and shore up liquidity.  

Prediction market app sponsorships

With DraftKings Predictions making a major ad push, some of the other best prediction markets are getting their name out in other ways: high-level sponsorships. 

Quietly, the Los Angeles Dodgers reached a deal with Kalshi to have digital signage and behind-the-plate decals throughout the stadium. A few weeks ago, Polymarket struck a deal with a major East Coast team, linking a sponsorship with the New York Yankees.

The agreement puts Polymarket branding on signage throughout Yankee Stadium, including LED displays that will run before and during home games. The company will also get a rotating spot on signage behind home plate during locally televised Yankees broadcasts on the YES Network and Prime Video. 

That move came after Novig struck a deal with the crosstown New York Mets. 

As of now, despite the season on the horizon, there doesn't seem to be any NFL teams inking sponsorship deals with prediction market operators.