DraftKings has finalised its acquisition of Railbird Technologies Inc. and its subsidiary, Railbird Exchange, LLC, in a move that will give it significant leverage in the regulated prediction market space.
Railbird is a federally licensed platform designated by the US Commodity Futures Trading Commission (CFTC). This means DraftKings now has a fully compliant entry point into real-money event trading.
The acquisition, first reported in July, provides DraftKings with both the technical infrastructure and licensing foundation to introduce event-based trading products tied to real-world outcomes.
It also aligns with the company’s strategy to broaden its market reach beyond sports wagering and fantasy sports.
DraftKings said Railbird’s proprietary technology and team will help establish “advantaged economics and long-term product differentiation” in the emerging sector.
DraftKings CEO and co-founder Jason Robins said the move represents a natural extension of the company’s growth ambitions.
He emphasised that DraftKings’ scale, mobile-first expertise, and strong brand recognition position it favourably to compete in the evolving prediction market ecosystem.
Miles Saffran, Railbird’s CEO and co-founder, described the deal as “a transformational moment” that will accelerate both companies’ innovation potential.
As part of the acquisition, DraftKings confirmed the forthcoming launch of “DraftKings Predictions,” a mobile application that will allow users to trade regulated event contracts on topics spanning finance, culture, and entertainment.
The platform will be designed to connect with multiple exchanges, potentially offering one of the broadest sets of event-based markets available.
Over time, the company expects to expand into additional categories, a move likely to enhance customer engagement and extend DraftKings’ audience reach.
Big step for DraftKings
Industry analysts view the acquisition as strategically significant.
According to Jordan Bender of Citizens, DraftKings may initially use CME Group as its exchange provider, leveraging CME’s existing infrastructure while integrating Railbird’s platform into its ecosystem.
This partnership would likely allow DraftKings to operate prediction markets in jurisdictions where sports betting remains prohibited, similar to how Kalshi operates, potentially creating a parallel revenue stream.
Bender noted that such flexibility could enable DraftKings to enter markets like Delaware, where existing sports betting operations are monopolised.
However, this expansion could create competitive pressure for operators such as Rush Street Interactive in Delaware and Bally’s in Rhode Island.
He also suggested that the timing of the launch might prompt DraftKings to delay issuing 2026 revenue and EBITDA guidance until its Q4 2025 results.
The deal is widely regarded as a pragmatic step to combine DraftKings’ gaming expertise with the emerging popularity of prediction markets.
Bender further suggested that data providers such as Genius Sports and Sportradar stand to benefit, as DraftKings is expected to leverage official league data to support trading products in new, underserved markets.
The DraftKings Predictions app is expected to debut in the coming months.