Overview
- DraftKings acquired Railbird Technologies and its CFTC-designated Railbird Exchange to accelerate its entry into regulated prediction markets.
- The company plans to launch a mobile app called DraftKings Predictions in the coming months to trade event contracts across finance, culture and entertainment, with the ability to connect to multiple exchanges.
- DraftKings has not committed to listing sports event contracts as state regulators and tribal authorities challenge sports-related markets as unlicensed gambling.
- If sports are added, offerings would likely be limited to states without licensed sportsbooks such as California and Texas, with guardrails like geofencing and enhanced identity verification.
- DraftKings shares rose about 5% in after-hours trading following the announcement as it steps into competition with Kalshi, Polymarket and FanDuel’s planned CME-linked platform.