DraftKings in Talks to Acquire Prediction Market Operator Railbird Exchange
The talks, which are said to be ongoing, come just weeks ahead of the start of the American football season—typically the busiest and most competitive time of year for the US sports betting industry.
DraftKings is reportedly in discussions to acquire Railbird Exchange, a recently licensed federal prediction market operator, according to Front Office Sports.
The talks, which are said to be ongoing, come just weeks ahead of the start of the American football season—typically the busiest and most competitive time of year for the US sports betting industry.
While no agreement has yet been finalised, and financial terms remain undisclosed, the potential acquisition would mark a significant step for DraftKings into the federally regulated prediction market space—a sector that has attracted increasing interest from sportsbook operators in recent months.
DraftKings previously registered a business entity called “DraftKings Predict” with the National Futures Association in an effort to launch such a platform, but ultimately withdrew its application in April.
A spokesperson for the company told NEXT.io
“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.
“DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration.”
Industry observers believe sportsbooks and prediction markets are increasingly converging—particularly as operators look for alternative ways to engage users in major US states such as California and Texas, where traditional sports betting remains illegal.
Railbird received approval from the Commodity Futures Trading Commission (CFTC) in May to operate as a Designated Contract Market.
