DraftKings Self-Certifies Combos Contract to Enable Parlays on DKeX Exchange
TL;DR — DraftKings self-certified a combos contract with the CFTC to support parlays on DKeX rather than routing to Crypto.com. Combos near 20% of consumer volume at DraftKings Predictions, which saw $30M daily in July while DKeX stays below $1M. Underdog’s recent parlay volume hit $1.2M on Aug. 7.
SCCG Take — This certification lets DraftKings internalize parlay flow on its owned exchange as consumer adoption grows. It favors operators who control both FCM and platform infrastructure.
DraftKings could soon roll out parlays on its in-house prediction market exchange DKeX rather than sending trades to Crypto.com. The company self-certified a “combos” contract with the CFTC on Friday. The filing covers a contract titled “Will all [outcomes] occur?” It settles based on the joint outcome of two or more constituent contracts using their rules.
DraftKings offers prediction markets through its futures commission merchant registration. It purchased the exchange last year when it was named Railbird. DKeX launched in late June. DraftKings Predictions processed around $30 million per day in total volume in July. Volume on DKeX is still typically below $1 million per day. Most volume from DraftKings Predictions, including parlays, goes through Crypto.com at the moment.
Several new exchanges have come to market in the past year. Few have offered parlays at scale. Robinhood’s exchange Rothera does not yet offer parlays. Underdog began offering parlays on its in-house exchange beyond small testing volume on Aug. 5. Its parlay volume on Aug. 7 was $1.2 million.
Parlays Already Big Part of DraftKings Predictions Volume
The self-certification comes as DraftKings plans to lean into prediction markets following a better-than-expected early performance. “Our confidence in our ability to win in predictions has only grown,” DraftKings CEO Jason Robins said on Friday’s earnings call discussing the company’s second-quarter results.
Robins added that “more than half” of DraftKings Predictions customers have used combos. The product is approaching 20% of consumer volume at DraftKings Predictions. Consumer volume is volume from the taker-side only, stripping out market makers.
For comparison, parlays are typically between 10% and 15% of consumer volume at Kalshi, despite being upward of 30% of total volume. According to reporting by InGame, this reflects the product’s traction even as DKeX volume builds slowly.
Reporting: InGame
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
DraftKings is moving to keep parlay economics in-house as prediction markets heat up — vertical integration wins again.
This is infrastructure strategy disguised as a filing. DraftKings is routing $30M daily through partners today but building to own the stack tomorrow. Combos already hit 20% of consumer volume at DraftKings Predictions — that flow is too valuable to lease out forever. Owning the FCM and the exchange is the competitive moat.
- DraftKings self-certified combos contract to support parlays on DKeX, not Crypto.com
- Parlays near 20% of consumer volume; DraftKings Predictions saw $30M daily in July vs. DKeX under $1M
- Underdog parlay volume hit $1.2M on Aug. 7 after launching in-house on Aug. 5
SCCG angle: We've connected operators to FCM partners and exchange infrastructure across regulated markets for three decades. If you're evaluating prediction market builds or routing deals, we know who controls what and where the margin lives — call us before you lease what you should own.
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