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DraftKings Gobbles Up Railbird to Get Into Predictions Markets

Sports Writer

Publish Date: Oct 23, 2025

Fact checked by: Sara Jane Gamelli

Key Points

DraftKings reportedly paying $250 million to buy Railbird Technologies
Acquisition gives DraftKings a predictions market platform
Polymarket will serve as clearinghouse for DraftKings in predictions market and sports event marketplace

In a move that catapults DraftKings into a new market, the gaming giant has purchased Railbird Technologies. This finally allows DraftKings to enter into the predictions market.

According to Front Office Sports, the DraftKings deal to buy Railbird is worth an estimated $250 million.

Predictions markets are contract-based platforms that all allow consumers to hedge against the outcome of events such as sports or even elections or awards shows, among other things. These types of "bets" are attached to what is being called "events contracts."

For months it's been rumored that DraftKings would enter into the predictions market, which has been gaining attention because of the mostly positive regulatory activity coming from the Commodity Futures Trading Commission regarding these new products.

Simultaneous with the DraftKings purchase of Railbird, blockchain betting platform Polymarket announced a partnership with the company. According to Polymarket, it will be serving as the designated clearinghouse for the Railbird-driven DraftKings predictions market.

Railbird was sought-after because it has been approved by the federal government via the CFTC for providing predictions markets. So far, the feds have been eager to allow such activity, but no state has yet designed a regulatory mechanism to address these markets.

Since technically financial stakes in events contracts and predictions markets are not "bets," Washington D.C. is arguing that they are regulated under federal commodities rules.

So far that has held sway

It's likely that DraftKings, its new brand Railbird, or a competitor will launch some sort of regulated predictions market app in 2026, or even before the end of 2025, though that timeline seems hasty.

There is speculation that a predictions market product offered by a regulated sports betting operator like DraftKings, could muddy their relationship with state regulators. Some state gaming officials have expressed concerns over a commodities-style sports and events-based market.

DraftKings battled its chief rival FanDuel for supremacy in the daily fantasy sports (DFS) market, sports betting, and online casinos in some jurisdictions. With many investors and technology companies pouring research and money into predictions markets, it makes sense that an industry leader like DraftKings would develop a product or do a merger-acquisition deal.

Kalshi, another predictions marketplace, had gotten a jump start on DraftKings and other traditional gaming companies by submitting a predictions market product to the CFTC and receiving approval. However, with DraftKings and potentially other large online gaming companies wedging themselves into the market, the competition could be fierce.

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