DraftKings acquires Railbird to launch prediction market platform

• DraftKings has acquired CFTC-licensed exchange Railbird Technologies to enter the prediction markets sector
• The company will launch DraftKings Predictions mobile app in the coming months for trading on finance, culture and entertainment events
• Railbird was granted designated contract market status by the CFTC in June 2025, enabling operations in all 50 states

DraftKings Inc has acquired Railbird Technologies Inc and its wholly owned subsidiary Railbird Exchange LLC, a federally licensed exchange designated by the Commodity Futures Trading Commission (CFTC).

The acquisition supports DraftKings’ broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts.​

The sports betting giant confirmed plans to launch DraftKings Predictions, a mobile application that will allow customers to trade regulated event contracts on real-world outcomes across finance, culture, and entertainment.

The product will have the flexibility to connect to multiple exchanges, enabling DraftKings to offer one of the broadest suites of markets to its customers.​

Beyond sports betting

The acquisition marks DraftKings’ most aggressive move yet into the contested world of prediction markets. Financial terms of the acquisition were not disclosed. DraftKings stock rose 5% in after-hours trading following the announcement.​

“We are excited about the additional opportunity that prediction markets could represent for our business,” said Jason Robins, CEO and Co-Founder of DraftKings. 

“We believe that Railbird’s team and platform—combined with DraftKings’ scale, trusted brand, and proven expertise in mobile-first products—positions us to win in this incremental space”.​

Railbird’s regulatory advantage

Railbird, founded in 2021, was granted status as a Designated Contract Market by the CFTC on 13 June 2025, enabling it to operate a regulated event contract exchange. The company participated in Y Combinator’s Winter 2022 batch.​

“This is a transformational moment for our company, and we are thrilled to be a part of the future of DraftKings,” said Miles Saffran, CEO and Co-Founder of Railbird. 

“DraftKings’ scale and leadership in the industry creates meaningful opportunities for our team and platform”.

Saffran previously worked at Point72 hedge fund alongside co-founder Edward Tian.​

Regulatory challenges ahead

The acquisition comes as prediction markets face increasing regulatory scrutiny from states.

Nevada’s Gaming Control Board issued a warning to licensed sportsbooks, stating that operators offering sports or other event contracts will have their licence suitability evaluated.​

The Nevada regulator cautioned that engaging in unlawful sports wagering in another state could call into question the good character and integrity of the licensee. In Nevada, sports event contracts are deemed a wagering activity, even under federally regulated exchanges.​

DraftKings Predictions is expected to debut as a mobile application in the coming months.

The move positions DraftKings to compete with existing platforms such as Kalshi and Polymarket in the growing prediction markets sector, offering operators new revenue streams where traditional sports betting faces regulatory restrictions.​