• Loading stock data...
Tuesday, October 21, 2025

DraftKings Buys Prediction-Markets Platform but No Sports Just Yet

DraftKings is getting in on the prediction-markets game with the acquisition of the Railbird Exchange, but sports event contracts aren’t on the table to start.

Sports are shown on TVs behind a bar as guests enjoy the grand opening of DraftKings Sports & Social in Ohio.
Imagn Images

DraftKings is getting in on the prediction-markets game with the acquisition of the Railbird Exchange, but the sports betting giant hasn’t yet committed to offering controversial sports event contracts.

The deal announced late Tuesday afternoon sees DraftKings acquiring Railbird Technologies and its subsidiary Railbird Exchange, an upstart prediction-markets platform that gained federal licensure in June. Front Office Sports first reported that DraftKings was in talks to buy Railbird Exchange in July. Financial details of the deal were not disclosed.

The transaction “supports DraftKings’ broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts,” the company said in a statement. A mobile app called DraftKings Predictions will launch “in the coming months,” with event contracts on “real-world outcomes across finance, culture, and entertainment.”

Notably absent from that list is sports, which is DraftKings’s trademark sector but has been the subject of much controversy in the world of prediction markets due to the similarity to sports betting, which is regulated on a state-by-state basis. A source familiar with the matter tells FOS that DraftKings is still evaluating whether to offer sports event contracts, and “no decisions have been made at this time.” There is potential for DraftKings to expand into additional categories over time, the source says.

This mirrors the revelation in August that FanDuel is preparing to enter prediction markets through a deal with derivatives exchange CME Group, an announcement that also did not include specific plans for sports offerings.

The entry of DraftKings and FanDuel into the prediction-markets industry is far from surprising. Both companies, and other sportsbooks, have made clear they are watching the space, which has exploded in popularity this year, even being featured in a recent episode of South Park.

The deal also signals increased competition facing primary prediction-markets players, Kalshi and Polymarket. Kalshi, which launched sports event contracts in January, has been expanding its offerings with products that allow users to trade on how many touchdowns a given player will score in a game, point spreads, and more. It recently raised $300 million and is fighting multiple battles in court over its sports products, which it argues are trading, not sports betting. Polymarket recently raised $2 billion from the operator of the New York Stock Exchange, and it is expected to relaunch in the U.S. imminently after having been previously barred from operating in the country since 2022.

Shares of DraftKings were more than 5% higher in after-hours trading Tuesday.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

The AWS Outage Wreaked Havoc in Sports

Ticketmaster, FanDuel, DraftKings, and Strava all had problems.
Jason Belzer

College Sports Is ‘Too Big of an Opportunity’

Panelists at the Asset Class summit agreed college sports is the next frontier.
Jon Ledecky

Islanders Owner Warns WNBA Against Labor Strife: ‘No Bueno’

Jon Ledecky drew a stark contrast between the two leagues.
Dave Checketts

Ex-Knicks President: When David Stern Accused Me of Skirting Cap

The Knicks walked away clean when accused of cap circumvention in the 1990s.

Featured Today

Christie's

Lou Gehrig’s $4M Jersey and the Exploding Sports Memorabilia Market

An ultra-rare sports collection is about to hit the auction block.
@chef__tezz/Instagram
October 19, 2025

Inside the NFL’s Private Chef Network

Private chefs are the unsung architects of player performance.
October 18, 2025

How Vanderbilt Went From SEC Doormat to Dark Horse CFP Candidate

After beating LSU, Clark Lea said: “Internally, we expect to win.”
May 27, 2025; Indianapolis, Indiana, USA; Indiana Pacers guard T.J. McConnell (9) shoots a three point basket over New York Knicks guard Josh Hart (3) during the third quarter of game four of the eastern conference finals for the 2025 NBA Playoffs at Gainbridge Fieldhouse
October 18, 2025

NBA Stars Swap Wine With League Friends and Foes

A wine-exchange tradition emerged from the bubble season’s close quarters.
Jenny Just

Austin FC Co-Owner: Teach Your Daughters to Play Poker

She calls poker a “mind sport” like chess that teaches important life skills.
NYSE
October 7, 2025

NYSE Owner Pours $2B Into Polymarket at $8B Valuation

Prediction markets keep pushing further into the mainstream.
Inside NCAA Headquarters located in Indianapolis on Friday, March 10, 2023. Ncaa President Charlie Baker
October 8, 2025

NCAA Approves Plan to Let D-I College Athletes Bet on Pro Sports

The proposal still needs to be approved by D-II and D-III committees.
Sponsored

Michelle Wie West: Women’s Sports Doesn’t Need Charity

The LPGA legend on redefining women’s sports and the future of golf.
Sep 18, 2025; Orchard Park, New York, USA; Buffalo Bills quarterback Josh Allen (17) runs the ball against the Miami Dolphins in the second half at Highmark Stadium.
exclusive
September 25, 2025

Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig is available in close to 40 states.
September 12, 2025

FanDuel, Jaguars Reach $5M Deal Over Employee Theft

A Jaguars employee stole $20 million and gambled much of it with FanDuel.
Sep 8, 2025; Chicago, Illinois, USA; Chicago Bears quarterback Caleb Williams (18) rushes the ball past Minnesota Vikings safety Theo Jackson (26) during the second half at Soldier Field.
exclusive
September 10, 2025

Americans See Little Difference Between Prediction Markets and Betting

A survey found 85% of respondents believe sports event contracts are gambling.
Sep 4, 2025; Philadelphia, Pennsylvania, USA; Philadelphia Eagles cornerback Adoree' Jackson (8) tackles Dallas Cowboys wide receiver CeeDee Lamb (88) during the third quarter of the game at Lincoln Financial Field.
September 5, 2025

Kalshi’s $27M NFL Opener Runs Into Tribal Challenge

California Tribes want Kalshi forced to implement geofencing.