dpDraftKings is now available in California through its predictions platform, despite traditional sports betting remaining illegal in the state after voters overwhelmingly rejected efforts to legalize it in 2022.
The online betting and gaming company joins prediction market competitors Kalshi and Polymarket, which allow users to fund what are known as “event contracts.” Those contracts are categorized differently from other types of gambling and are federally regulated through the Commodity Futures Trading Commission, allowing the platforms to avoid state-level sports betting restrictions or bans.
California voters rejected two sports betting measures in 2022. Proposition 27 would have allowed online and mobile sports wagering outside tribal lands, while Proposition 26 would have allowed sports betting on the lands.
Despite this, DraftKings announced in June that its predictions platform was available in California. On the platform, users can put money on outcomes ranging from the year’s top song on Spotify to the winner of the next presidential election, as well as sporting events.
When asked why California appears to be such a lucrative market for gaming companies, James Siva, the chairman of the California Nations Indian Gaming Association, said California’s size makes it the “golden goose.”
“And so, because of that, all of the gaming operators are looking at California as an essential piece of what’s going to make them viable as they move forward,” Siva said.
Then, Siva expressed concern that the growth of these prediction markets could take business away from tribal communities that depend on casinos for jobs and funding. It is for these reasons, among other, the California Nations Indian Gaming Association was a strong supporter of Proposition 26 and opposed Proposition 27 in 2022.
Prediction platforms also have a different minimum age requirement than traditional sports betting. People who are 18 can place bets on prediction sites, compared with a minimum age of 21 for traditional sports betting.
Looking ahead, the emergence of the prediction market raises questions about what comes next in California, where voters rejected both online sports betting and sports betting on tribal lands.
This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication.
