DraftKings has received approval from the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) to act as an introducing broker (IB) — seemingly bringing it one step closer to launching its own prediction market platform.
The approval of DraftKings’ IB application — under the name Gus III LLC — was indicated on the NFA website.
In the world of CFTC-registered event contracts, an IB offers customers access to contracts made by a designated contract market (DCM). An IB does not technically handle customer funds, though this is not always noticeable to the end user.
“DraftKings has been approved as a registered Introducing Broker with the U.S. Commodity Futures Trading Commission and a Member of the National Futures Association under its wholly-owned subsidiary Gus III LLC (d/b/a DraftKings Predictions),” a spokesperson confirmed to InGame in a statement.