It appears that “responsible gaming” is no longer in vogue. Here comes “responsible engagement.”
Well, at least regarding so-called “prediction markets,” which DraftKings plans to offer soon through its upcoming product, DraftKings Predictions.
In a shareholder letter released on Nov. 6, DraftKings CEO Jason Robins explained why his company will enter the prediction market space to compete with Kalshi and Polymarket — nascent betting apps that have disrupted the traditional online sports gambling industry.
He said that “responsible engagement” makes DraftKings a winner in prediction markets, which also typically take bets on elections, political debates, pop culture, and various other real-world events.
What is ‘Responsible Engagement’?
Let’s briefly explain what prediction markets are.
Under federal CFTC registration, prediction markets are attempting to offer their form of online sports gambling nationwide, bypassing the state-level regulation that DraftKings has been subject to for years.
Prediction markets are a highly controversial — and allegedly illegal, according to states such as New York and Massachusetts — form of online sports gambling. Yet, the products essentially have a regulatory blessing from the federal government.
DraftKings will not sit on the sidelines while the likes of Kalshi, Polymarket, and others allegedly circumvent state law to take a piece of the American sports gambling market. The market was worth $13.7 billion in 2024.
Prediction market apps claim they aren’t gambling or even “gaming” — an already widely used euphemism for gambling that can mislead and harm consumers.
These products claim to be “trading.” Sometimes, their influencers refer to it as “investing.”
It appears that “responsible gaming,” the messaging and framework most states use to provide some consumer protection around online sports gambling, is being sidestepped here. Using it would give prediction markets the label of “gaming.” Hence, “responsible engagement.”
Individual gambling “responsibility” can also be used as a marketing tool to grow the sector. It has become a maze of corporate speak.
In the end, online gambling apps can severely harm consumers vulnerable to addiction, along with their families and communities. Roughly half of online sports bettors report some level of harm in surveys and public-health statistics.
While states mandate sports betting platforms to offer some responsible gaming tools (e.g., self-exclusion), the CFTC does not.
DraftKings Shareholder Letter on Prediction Markets
In the shareholder letter, Robins stated that DraftKings Predictions is for states where online sports betting is not currently legal under state law.
To compete with rival prediction market firms, DraftKings appears poised to push the boundaries of regulated sports betting.
Some states where DraftKings legally operates have pushed back. Those states have warned their online sports betting licensees that offering sports betting where it is not currently legal (such as in Texas, California, or Georgia) could jeopardize their licenses.
Nonetheless, DraftKings will offer a prediction market product and use “responsible engagement” to refer to mitigating harm.
Here is part of what Robins wrote in the shareholder letter:
“We will pursue this [predictions] opportunity, we will compete, and we will win. For the same reasons that we have been successful competing in the sports betting industry, we expect to succeed here. Our capabilities are superior when it comes to customer acquisition, product development, regulatory compliance, responsible engagement, and the many other critical factors it will take to win in the space. Our database will be a strong competitive advantage. Add in our new agreements with ESPN and NBCUniversal, and DraftKings will have an even stronger presence across the sports landscape in the years ahead.”
As the lines between sports gambling products become increasingly blurred, consumers should be aware that all forms of online gambling carry significant risk of addiction and financial harm.
Image by rus-burkhanov from Pixabay.
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