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DraftKings eying purchase of prediction market platform Railbird Exchange

Sports Writer

Publish Date: Jul 15, 2025

Fact checked by: Sara Jane Gamelli

Key Points

DraftKings reportedly has interest in predictions market company Railbird Exchange
Interest comes following reports that rival FanDuel is seeking collaboration with Kalshi

After abandoning its own effort to embark on a predictions market betting platform, DraftKings may be preparing to purchase one: Railbird Exchange. This according to reporting by Front Office Sports.

Railbird Exchange claims it will be unlike anything seen in the gaming industry, which is why the bean counters at DraftKings and other traditional sportsbooks are keen to investigate predictions markets.

Such a product allows users to trade on the outcomes of real-world events. Railbird Exchange, which has recently received approval from the U.S. Commodity Futures Trading Commission (CFTC), operates as a designated contract market, enabling consumers to buy and sell contracts based on their predictions of future happenings.

Predictions markets may offer customers a chance to place money into an account that will pay off if a specific sporting event has a certain outcome.

Some observers feel it's only a matter of time before predictions markets begin to list prop bets and offer parlay-style markets.

As of yet, Railbird Exchange has not launched an app or website with predictions markets in the U.S. or anywhere else. Front Office Sports did not report on the possible sale price for Railbird, if DraftKings is able to get its hands on the company.

DraftKings could be wary of falling behind. Rumors have linked rival FanDuel to a partnership or some sort of collaboration with Kalshi, a predictions market competitor of Railbird.

Even when DraftKings decided to not launch a predictions market earlier in 2025, the company was careful to explain it had interest in the burgeoning and controversial new industry.

“DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration,” DraftKings said in April when it withdrew a plan to operate a predictions market.

The future of predictions markets is unclear, however

At least seven states have taken action against Kalshi. Regulators in Arizona, Illinois, Maryland, Montana, New Jersey, Nevada, and Ohio have issued orders for Kalshi to exit those states.

Three states, including legal sportsbook jurisdictions like Maryland, Nevada, and New Jersey, have filed lawsuits to extinguish predictions markets like Kalshi.

It remains to be seen if Railbird Exchange will face obstacles at being licensed in the United States. For some critics, the predictions markets, with the ability to "hedge" against events like economic outcomes or elections, feels too much like speculation or stock market shenanigans.

If DraftKings were to swallow up Railbird Exchange, a well-funded company that hasn't even taken its first order, it could be a case of "if you can't beat 'em, join 'em."

DraftKings would not need to worry about getting some of its own business siphoned off. Check out our Ballislife play section for more updates.

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