Published on: October 21, 2025, 05:34h.
Updated on: October 21, 2025, 05:34h.
- DraftKings acquires Railbird Exchange
- Upcoming launch of DraftKings Predictions
- No mention of sports event contracts
After months of anticipation, DraftKings (NASDAQ: DKNG) has officially announced its acquisition of Railbird Technologies, the parent company behind Railbird Exchange, a firm specializing in prediction markets. Furthermore, DraftKings revealed plans for the launch of DraftKings Predictions in the near future.
Specific financial details regarding the Railbird acquisition, which began circulating in July, were not disclosed. However, the market seems to view the news positively; DraftKings’ stock rose nearly 5% in after-hours trading shortly after the announcement followed a recent slump attributed to increased activity on competing platforms like Kalshi.
The acquisition aligns with DraftKings’ strategy to enter the prediction markets realm, enhancing its addressable market through regulated event contracts. Railbird’s technology and team create a strategic base for the company’s future growth in this sector, leading to improved financial metrics and long-term product innovation,” said a statement from the Boston-based gaming giant.
Industry analysis suggests there was no bidding competition for Railbird. Citizens Equity Research analyst Jordan Bender indicated that this acquisition bears minimal risk for DraftKings, as the buyer typically frames such agreements with low initial costs and performance-based payouts stretched over several years, contingent upon meeting specific financial goals.
Details on DraftKings Predictions
As previously mentioned, DraftKings is preparing to introduce a prediction markets platform that will launch in the coming months. This mobile application will enable users to trade regulated event contracts based on actual outcomes in finance, culture, and entertainment.
Importantly, DraftKings has not specified whether sports event contracts will be featured on this platform. The firm did not provide reasons for the exclusion of sports contracts, but it is understandable that DraftKings opts to sidestep this area for now, as several state regulators have warned sportsbook operators that pursuing sports prediction markets could jeopardize their gaming licenses.
Bender asserts that DraftKings might leverage the launch of its prediction markets to tap into states where sports betting is illegal, as well as legal states where it currently does not operate, like Delaware.
“To recap, DraftKings has fantasy sports and Pick6 available in 44 states, and can use its customer data and brand strength to effectively cross-promote its sports-focused users to the new prediction market platform, potentially at a better rate than existing exchanges like Kalshi,” the analyst added. “This move essentially doubles the potential market for a ‘betting product’ across the U.S. population.”
Potential Involvement of CME
In the announcement, DraftKings mentioned its prediction market would “have the capability to interface with multiple exchanges.” Bender pointed out this could indicate that CME Group (NASDAQ: CME) might be involved until Railbird’s technology is fully integrated with the forthcoming DraftKings app.
Reports last week suggested that the owner of the Chicago Mercantile Exchange (CME) is looking to introduce sports event contracts by year-end.
Bender remarked that this could signal a “breadcrumb” hinting at DraftKings Predictions possibly including sports-related contracts as early as 2026. This aligns with DraftKings’ statement about the platform potentially expanding into additional categories over time.