DraftKings Eyes Railbird Acquisition to Expand Prediction Market

DraftKings, a leading sports betting and gaming company, is in talks to acquire Railbird, a federally regulated prediction market and event contract trading platform headquartered in New York. This potential acquisition is part of DraftKings' ongoing efforts to expand its digital entertainment and gaming services. Railbird, founded by former Point72 investment research analysts Miles Safran and Edward Tian in 2021, was approved by the U.S. Commodity Futures Trading Commission (CFTC) in June 2025 to operate as a designated contract market, making it one of the few regulated prediction markets in the United States.

Railbird's core service is a platform that allows users to trade event-based contracts. These contracts enable individuals and businesses to wager on the outcomes of real-world events, including economic indicators, public policy decisions, weather patterns, entertainment news, and sports results. The price of each contract reflects the market's collective expectation of the probability of a specific outcome occurring. The platform aims to cover all 50 states in the U.S.

In response to the reports, DraftKings issued a statement saying, "DraftKings engages in discussions with various companies on a range of matters as part of its regular business operations. In line with our standard practice, we do not comment on specific negotiations."

Earlier this year, DraftKings applied for a federal license to operate a prediction market but withdrew the application a few months later. There have also been reports that Flutter Entertainment's FanDuel, a major player in the sports betting industry, had discussed a potential partnership with Kalshi, one of the most well-known regulated exchanges focused on trading the outcomes of future events.

This potential acquisition of Railbird aligns with DraftKings' strategy to integrate new technologies and platforms, enhancing its competitive edge and attracting a broader audience. By adding Railbird to its portfolio, DraftKings aims to provide users with a more comprehensive and engaging experience, further solidifying its position as a leader in the sports betting and gaming industry. This move underscores DraftKings' commitment to innovation and its efforts to stay ahead in the rapidly evolving digital entertainment landscape.