DraftKings is carving out a space for itself in prediction markets with the acquisition of CFTC-licensed Railbird Exchange.
DraftKings has acquired Railbird Technologies and its wholly owned subsidiary Railbird Exchange for an undisclosed amount, gaining access to a federally licensed exchange designated by the Commodity Futures Trading Commission (CFTC).
The acquisition is in line with DraftKings’s broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts.
DraftKings said in a statement Tuesday that Railbird’s team and proprietary technology establish a strategic foundation for the company’s future growth in event contracts, enabling advantaged economics and long-term product differentiation.
“We are excited about the additional opportunity that prediction markets could represent for our business,” said Jason Robins, CEO and co-founder of DraftKings. “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 acquisition of Railbird will facilitate the launch of DraftKings Predictions, a forthcoming mobile application that will allow customers to trade regulated event contracts on real-world outcomes across finance, culture, and entertainment, with additional categories expected to be added over time.
Miles Saffran, CEO and co-founder of Railbird, commented: “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.”
Shares in DraftKings Inc. (NASDAQ:DKNG) closed marginally higher at $33.62 per share in New York Tuesday, prior to the acquisition announcement, and were up 4.13 per cent in after-hours trading to $35.01 per share.