Why Is DKNG Stock Rising Today?

• DraftKings launched its proprietary prediction markets exchange, DKeX.
• DraftKings said its predictions platform is seeing rapid growth, generating about $3.4 billion in annualized consumer volume across its unified platform.
• DKeX uses the technology and CFTC license from the company’s acquisition of Railbird Technologies, the firm noted.

Shares of DraftKings Inc. (DKNG) rose over 2% premarket on Friday after the online betting company launched its proprietary predictions market exchange, DKeX, and integrated it into its unified sports and casino platform.

The move provides the company greater control over the content, operating economics, and end-to-end customer service, according to DraftKings.

“DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster as we continue enhancing our unified app," said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings.

DKeX uses the technology and CFTC license from the company’s acquisition of Railbird Technologies, the firm noted.

DraftKings Predictions Growth Trajectory

The company reported that it has seen a rapid growth in its DraftKings Predictions platform, with about $3.4 billion in annualized consumer volume and about $11.3 billion in annualized total trading volume for the week ended June 21.

The firm noted that since the launch of its platform in mid-May, over 30% of customers have used combinations, which bundle multiple individual contracts into a single position, demonstrating strong demand for a custom, sports-first prediction market experience. 

DraftKings now expects the momentum to continue throughout July due to ongoing platform modifications and enhancements, growing adoption of new event contracts and features such as combinations, and growing interest in the World Cup.

“The pace of development across Predictions has been substantial, from expanding our event contract offerings to introducing key features like combos, which customers have quickly embraced,” said Jeanine Hightower-Sellitto, DraftKings Senior Vice President and General Manager of Prediction Markets.

Hightower-Sellitto further called the DKeX a latest milestone in the progression that creates opportunities for new offerings ahead of major events on the sports calendar.

What Retail Thinks Of DKNG

On Stocktwits, retail sentiment surrounding the stock has declined to ‘bearish’ from ‘neutral’, while message volumes have increased to ‘high’ from ‘low’ in the past 24 hours.

DKNG stock has sunk over 35% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Why Is OMER Stock Falling Today?