Sports betting, iGaming, and daily fantasy sports operator DraftKings has confirmed the acquisition of the federally regulated trading exchange Railbird.
The events contracts exchange platform is designated by the Commodity Futures Trading Commission (CFTC), making it one of the few exchanges in the US authorized to offer trading on real-world outcomes under federal oversight.
This move marks the gambling operator’s expansion into the prediction market space and extends its reach beyond sports betting. The announcement also sparked an increase in DraftKings’ stock, which rose as much as 8.3% in aftermarket trading after the acquisition was revealed.
While the deal’s terms were not disclosed, the gambling operator now plans to release an app in the coming months called DraftKings Predictions. It will allow users to trade yes-or-no contracts on real-life events in categories like finance, entertainment, and culture. The app will function similarly to trading platforms like Kalshi and Polymarket.
When asked about the acquisition, CEO and Co-Founder of DraftKings, Jason Robins, said, “We are excited about the additional opportunity that prediction markets could represent for our business. We believe that Railbird’s team and platform—combined with DraftKings’ scale, trusted brand, and proven expertise in mobile-first products—positions us to win in this incremental space.”
DraftKings has not yet confirmed whether contracts tied to sports events will be offered, but the company said that it may expand into additional categories in the future.
Miles Saffran, CEO and Co-Founder of Railbird, added, “This is a transformational moment for our company, and we are thrilled to be a part of the future of DraftKings. DraftKings’ scale and leadership in the industry creates meaningful opportunities for our team and platform.”