DraftKings is acquiring Railbird, a Commodity Futures Trading Commission–licensed predictions platform, as it prepares to launch a new mobile product called DraftKings Predictions. The acquisition gives DraftKings access to Railbird’s proprietary technology and experienced team, expanding its reach beyond sports betting into broader prediction markets that cover events across finance, culture, and entertainment.
CEO Jason Robins said the deal positions DraftKings to compete effectively in this growing space by combining Railbird’s technology with the company’s scale and trusted brand. However, regulators in several states, including Nevada, have raised concerns about prediction markets tied to sports, which could be viewed as unlicensed gambling. DraftKings is expected to target non–sports-betting states such as California and Texas and implement enhanced verification systems to ensure compliance.