DraftKings Inc. (DraftKings) has made the step to acquire prediction market company Railbird to gain a foothold in the growing sports contract market.
The deal marks another milestone for DraftKings as the national gambling name is anticipating a new mobile predictions platform for launch in late 2025 or early 2026, named DraftKings Predictions.
DraftKings acquires Railbird to enhance portfolio in predictions market
Prediction markets have been heating up since their impact during the previous presidential elections, and are now ingrained in so many markets, including weather, politics, and general novelty.
One new territory that a number of these companies are growing in is sports betting or sporting outcomes. This exponential growth has come with an amount of legal and regulatory tension across the United States as these companies seek to use the safe haven of the Commodity Futures Trading Commission (CFTC) and the Commodity Exchange Act (CEA).
Kalshi, as we reported, is the latest to see the argument into the CFTC and CEA shield showing signs of possible cracking, with the company now facing Nevada regulators’ ire in one of their many state-led legal battles.
DraftKings, according to the recently published Railbird statement, directly mentions the federally regulated nature of the predictions company and see’s the deal as a “broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts.”
DraftKings expanding across 2025
Jason Robins, CEO and Co-Founder of DraftKings, said of the deal, “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.”
The deal also is hot off the heels of the announcement DraftKings made with NBCUniversal (NBC) to become the official staking partner on their broadcasts.
This was a huge milestone for DraftKings as their brand would have access and be front runner in NBC’s coverage of the NBA, NFL, NCAA, PGA Tour, and Premier League to name a few of the billion dollar competitions.
This wasn’t lost on Railbird’s CEO and Co-Founder of Railbird, Miles Saffran. He said “This is a transformational moment for our company, and we are thrilled to be a part of the future of DraftKings.”
Saffran concluded that the betting giant’s “scale and leadership in the industry creates meaningful opportunities for our team and platform.”
Featured image: DraftKings
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