Ben Strack

<div id="highlights-block_6230791f4bdeb" class="highlights">
 <ul>
 <li>Sports will be a main driver for blockchain adoption, and digital collectibles are an important part of that process, DraftKings exec says</li>
 <li>The company is paying close attention to the blockchain gaming space as play-to-earn models gain momentum</li>
 </ul>
 
</div>



DraftKings is launching its first NFT collection developed in-house, Blockworks has learned, as the company expects sports to be a mainstream driver for blockchain adoption.



The Boston-based sports betting company is launching the NFT (non-fungible token) series in time for the NCAA’s college basketball tournament, which tips off Tuesday and runs through April 4. 



“Few times on the sports calendar can match the drama and spectacle of March’s college basketball tournament, which is why we chose this month-long event to initiate this new digital collectibles program,” DraftKings co-founder Matt Kalish said.



The <a href="https://marketplace.draftkings.com/lp/2022-college-hoops-nft-collection" target="_blank" rel="noreferrer noopener">2022 College Hoops Collection</a> is the first within a planned Primetime NFT Series that will drop around other major sporting events. Beth Beiriger, DraftKings’ senior vice president of marketplace operations, told Blockworks that the company could launch future NFT collections alongside the NBA Playoffs and the Super Bowl.



The launch comes after DraftKings unveiled last August its digital collectibles marketplace, which offers curated NFT drops and supports secondary-market transactions. It announced at the time that it would be the exclusive distributor of sports-related NFT content from NFT platform Autograph.&nbsp;



Beiriger said that the new NFT series marks the first time the company is connecting digital collectibles to its legacy products. The 2022 College Hoops Collection NFT holders will be eligible to receive DraftKings site credit to place bets and enter pools, brackets and contests across its sportsbook and daily fantasy offerings.



Collectors holding all eight NFTs within the collection will receive a ninth NFT after the NCAA championship game that will give them early access to the next Primetime NFT Series drop.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We see sports as a mainstream driver for blockchain adoption, and digital collectibles are an important part of that early onboarding process,” Beiriger told Blockworks.</blockquote>



“Between cashless concessions within stadiums, online ticketing and much more today, consumers have already been conditioned for the ongoing digitization of sports as NFTs further advance this trend,” she added.



The company is also paying close attention to the blockchain gaming space as play-to-earn models gain momentum, Beiriger said.



The company expects to debut an NFT-based fantasy game ahead of the next NFL season. An agreement with the NFL Players Association grants DraftKings licensing rights for the league’s active players.



<h3 class="wp-block-heading">Polygon partnership</h3>



DraftKings also announced last week that it was partnering with infrastructure platform Zero Hash to stake digital assets it holds in its treasury to support the Polygon (MATIC) blockchain network. The news builds upon the company’s <a href="https://www.draftkings.com/about/news/2021/10/polygon-and-draftkings-enter-into-a-strategic-blockchain-agreement/?wpsrc=Organic%20Search&amp;wpaffn=Google&amp;wpkw=https%3A%2F%2Fwww.draftkings.com%2Fabout%2Fnews%2F2021%2F10%2Fpolygon-and-draftkings-enter-into-a-strategic-blockchain-agreement%2F&amp;wpcn=about&amp;wpscn=news%2F2021%2F10%2Fpolygon-and-draftkings-enter-into-a-strategic-blockchain-agreement%2F" target="_blank" rel="noreferrer noopener">previously disclosed partnership</a> with Polygon.



“As a validator, DraftKings will become an even more active participant in the Polygon ecosystem, playing a critical role in guaranteeing the integrity of the blockchain and securing the network,” Polygon Co-Founder Sandeep Nailwal said.



<h3 class="wp-block-heading">Drafting Web3 talent</h3>



Amid the crypto initiatives and plans, the company is seeking to onboard talent within the space, job postings indicate.&nbsp;



DraftKings is seeking a senior Web3 engineer for its NFT marketplace, for example, that will help the company “build and expand our blockchain infrastructure to ensure the scalability and availability of the entire platform,” according to its website.



The company is also looking for a fraud specialist to work on investigations related to cryptocurrency, blockchain and the NFT marketplace, as well as ensure compliance with anti-money laundering regulations.&nbsp;



Though the company has made moves to directly onboard blockchain, crypto and NFT experts, such as through its acquisition of Scarcity Labs last year, it is scouring all industries for people who can help DraftKings grow.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“The crypto space is still so nascent and rapidly growing that we do not want to miss out on premier talent by focusing solely on crypto natives,” Beiriger said.</blockquote>



“Just as we want to onboard customers through mainstream accessibility, we want to attract a diverse talent pool from a range of native professional backgrounds or transferable skill sets.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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DraftKings Links NFTs to Betting Products in Web3 Push

Casey Wagner

<div id="highlights-block_b7f1bba4b8ae709c766dfaa60812af4c" class="highlights">
 <ul>
 <li>The CFTC filed a cease and desist order against popular crypto betting platform Polymarket</li>
 <li>The startup allowed users to bet on anything from election results to celebrity engagements to earn cryptocurrencies</li>
 </ul>
 
</div>



The Commodity Futures Trading Commission (CFTC) took its first public action against decentralized finance (DeFi) companies of the year on Monday.&nbsp;



The regulator fined cryptocurrency betting platform Blockratize Inc., which operates under the name Polymarket, $1.4 million. The CFTC has also ordered the New York-based company to wind down “all markets displayed on Polymarket.com that do not comply with the Commodity Exchange Act (CEA),” according to a <a href="https://www.cftc.gov/PressRoom/PressReleases/8478-22" target="_blank" rel="noreferrer noopener">statement</a> from the CFTC.&nbsp;



Polymarket enables users to bet on current events, including politics and pop culture, using cryptocurrencies. Popular bets of the past year included whether or not Jennifer Lopez and Ben Affleck would get engaged or if the United States would reach 100,000 new daily coronavirus cases before Jan. 1, 2022.&nbsp;&nbsp;



Users select one of at least two options for the given scenario and place bets, which, under federal law, qualifies the markets as swaps. The CFTC reports that Polymarket has offered more than 900 different event markets since its inception in 2020. 



Polymarket failed to obtain a Designated Contract Market (DCM) and Swap Execution Facility (SEF) registration, both requirements under the CEA, the CFTC said.&nbsp;



“All derivatives markets must operate within the bounds of the law regardless of the technology used, and particularly including those in the so-called decentralized finance or ‘DeFi’ space,” acting director of enforcement, Vincent McGonagle, said in a statement. “Market participants should proactively engage with the CFTC to ensure that our markets remain robust, transparent, and afford customers the protection provided under the CEA and our regulations.”



Polymarket responded to the filing late Monday afternoon via Twitter.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We’re pleased to confirm that we&#39;ve successfully agreed to a settlement with the CFTC, &amp; are excited to move forward &amp; focus on the future of Polymarket. As per the order, the 3 markets lasting past 1/14 that don&#39;t comply with the Act will be prematurely resolved. More soon 🔮&mdash; Polymarket (@Polymarket) <a href="https://twitter.com/Polymarket/status/1478132679510048773?ref_src=twsrc%5Etfw">January 3, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<a href="https://www.bloomberg.com/news/articles/2021-10-23/crypto-venue-for-bets-on-trump-jlo-and-covid-faces-u-s-probe" target="_blank" rel="noreferrer noopener">Reports</a> that the CFTC was investigating Polymarket first surfaced in October 2021. The company secured a $4 million seed funding round the same month. Polychain Capital was a lead investor.&nbsp;



Polymarket cooperated with the investigation, the CFTC report noted, which helped the company secure a lower fine. All Polymarket markets will end by Jan. 14, 2022, and refunds will be available to users by Jan 24.



Updated July 23, 2024 at 3:49 pm ET: A previous version of this article stated that Polymarket was founded in 2018, whereas it was founded in 2020. 



Updated January 3, 2022, at 10:09 pm ET to add additional information and a statement from Polymarket.



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