DraftKings is said to have commenced discussions to acquire the prediction market Railbird Exchange.
After the betting giant submitted and then pulled an application to register ‘DraftKings Predict’ with the National Futures Association, it appears the company has decided on another route to enter the prediction market space.
As initially reported by Front Office Sports, DraftKings is currently in talks over a potential deal to take over the fledgling platform known as Railbird Exchange. It is a newly licensed designated contract market (DCM), having just received certification from the CFTC on June 18.
Set up in 2021 by former financial analysts Miles Saffran and Edward Tian, Railbird is yet to launch, but the press release confirming its CFTC approval added that it was “expected to open for trading later this year.”
If a takeover does materialize, DraftKings would become the first major sportsbook operator to venture into the emerging prediction markets industry.
That would not be a surprise given the company’s early efforts to launch its own platform, but across the wider industry, there is a growing indication that sportsbooks and prediction markets will move closer together in the coming months.
FanDuel has already had talks with prominent prediction market Kalshi, although no decision has been reached.
EXCLUSIVE: DraftKings is in acquisition talks with Railbird Exchange, an upstart prediction market platform that recently got federally licensed, sources tell FOS.
By @sportsrapport and @BenHorney ⬇️
— Front Office Sports (@FOS) July 14, 2025
New markets and growth opportunities
One of the key attractions for the big companies is that sportsbooks are regulated on a state-by-state basis, compared to the federal licensing system that the prediction platforms are bound by.
This opens up the potential for new markets and growth opportunities in massive states such as California and Texas, where legal sportsbooks are currently prohibited.
“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions,” a spokesperson for the sportsbook provider told FOS.
DraftKings was also recently ordered to refund $3M after a Connecticut DCP advertising investigation.
While prediction markets are on the rise, there is still uncertainty that surrounds their proliferation and activity.
The legality of the prediction markets (contracts) is still to be proven and set, but recent court cases have largely been decided in their favour.
Kalshi has faced serial lawsuits, and the wider litigation is ongoing, as well as cease-and-desist orders from regulators in at least seven states: Nevada, New Jersey, Illinois, Maryland, Ohio, Montana, and Arizona.
In response, the company has counter-sued regulators in three of those states, (Nevada, New Jersey and Maryland), with notable victories secured in Nevada and New Jersey.
The cases are ongoing, but Kalshi remains operational in those states.
Image credit: DraftKings
