DraftKings Inc. has announced the acquisition of Railbird Technologies Inc. and its subsidiary, Railbird Exchange, LLC — a federally licensed exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC). The move signals DraftKings’ intention to enter the regulated prediction market sector through event contracts tied to real-world outcomes.
The acquisition provides DraftKings with proprietary technology, operational expertise, and regulatory licensing that will support its long-term ambitions to diversify beyond traditional sports betting and iGaming. Railbird’s infrastructure is expected to serve as the foundation for DraftKings’ upcoming product, DraftKings Predictions — a mobile application that will allow customers to trade event contracts covering a range of categories, including finance, entertainment, and culture.
DraftKings stated that the forthcoming platform will connect to multiple exchanges, offering users access to a wide array of markets. The company expects DraftKings Predictions to launch in the coming months, marking a significant expansion of its addressable market and a step toward integrating real-money prediction trading into its broader portfolio.
Legal counsel for DraftKings was provided by Sullivan & Cromwell LLP, while Moelis & Company LLC acted as financial advisor to Railbird, with Proskauer Rose LLP and Kirkland & Ellis LLP serving as Railbird’s legal advisors.
“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.”
“This is a transformational moment for our company, and we are thrilled to be a part of the future of DraftKings,” said Miles Saffran, CEO and Co-Founder of Railbird. “DraftKings’ scale and leadership in the industry creates meaningful opportunities for our team and platform.”
