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DraftKings Buys CFTC-Designated Railbird, Plans 'DraftKings Predictions' App

The CFTC designation gives DraftKings a federal foothold for event contracts under a patchwork of state restrictions.

Overview

  • DraftKings acquired Railbird Technologies and its Railbird Exchange, a CFTC-designated event contracts exchange, to expand into regulated prediction markets.
  • The company said a new mobile product called DraftKings Predictions will launch in the coming months to let users trade contracts tied to outcomes in finance, culture and entertainment.
  • DraftKings said Railbird’s team and proprietary technology will underpin the product, which is designed to connect to multiple exchanges to broaden available markets.
  • Reporting highlights regulatory friction around sports and election markets, with some states and tribal authorities challenging such offerings and Nevada warning operators about licensing risks.
  • Coverage indicates DraftKings may limit certain markets by jurisdiction, strengthen identity checks and employ geofencing, while shares rose about 5% in after-hours trading following the news.