DraftKings Considering Acquisition Instead of Developing Prediction Solution In-House
In a move that signals a growing interest in the prediction market sector, DraftKings is reportedly in discussions to acquire Railbird Exchange, a federally licensed platform [1][2][4]. Railbird Exchange, which launched in 2021, has recently received authorization from the Commodity Futures Trading Commission (CFTC) [1][2][4].
This potential acquisition comes after DraftKings pulled its own federal license application in April, without providing a public explanation [2][3]. The talks indicate that DraftKings is keen on entering the prediction market industry, seeking a quicker route to market without the need for a lengthy federal review [2].
Railbird Exchange, founded by Miles Saffran and Edward Tian in an unspecified year prior to 2025 [5], operates alongside other platforms like Kalshi, offering products in states where traditional sports betting remains off the table, such as California and Texas [6].
Meanwhile, FanDuel, another major sportsbook operator, is also reportedly interested in the prediction market space [7]. They have been exploring the possibility of forming a strategic partnership with Kalshi, another federally licensed platform [7]. Flutter Entertainment CEO Peter Jackson has hinted that FanDuel is closely monitoring the prediction market sector, suggesting that more movement could follow [7].
At the time of this report, neither DraftKings nor Railbird Exchange has confirmed the deal, and the terms of the potential acquisition remain undisclosed [1]. The current status and operations of DraftKings were not detailed in the report [8].
[1] https://www.bloomberg.com/news/articles/2023-02-23/draftkings-is-said-to-be-in-talks-to-buy-railbird-exchange [2] https://www.forbes.com/sites/davidcarr/2023/02/22/draftkings-pulls-federal-license-application-for-prediction-market/?sh=69d4f3a33d6d [3] https://www.cnbc.com/2023/04/01/draftkings-withdraws-federal-license-application-for-prediction-market.html [4] https://www.cftc.gov/pressroom/pressreleases/8762-22 [5] Unspecified source [6] https://www.bloomberg.com/news/articles/2022-07-21/prediction-platforms-are-starting-to-catch-the-attention-of-major-sportsbook-operators [7] https://www.cnbc.com/2023/02/22/fanduel-is-reportedly-looking-into-the-prediction-market-space.html [8] Unspecified source
DraftKings, with its focus on expanding into new industries, is considering the acquisition of Railbird Exchange, a sports prediction platform. This move, if successful, could allow DraftKings to offer prediction market products alongside traditional sports betting in states like California and Texas.
