DraftKings is reportedly in discussions to acquire prediction markets player Railbird

DraftKings (NASDAQ:DKNG) is in talks to acquire prediction market platform Railbird, according to Front Row Sports Exchange.

Railbird is a federally regulated prediction market and event contract exchange based in New York. Founded in 2021 by Miles Saffran and Edward Tian, both former investment research analysts at Point72, the company received approval from the U.S. Commodity Futures Trading Commission (CFTC) as a Designated Contract Market in June 2025, making it one of the few regulated prediction markets in the United States.

According to information from Y Combinator, Railbird is backed by investors that include the CEO of SeatGeek and several venture capital firms.

Railbird’s core service is providing a platform for users to buy and sell event-based contracts. The contracts allow individuals and businesses to take positions on the outcomes of real-world events, including economic indicators, public policy decisions, weather patterns, entertainment, and sports results. The price of each contract reflects the collective belief of the market about the likelihood of a specific outcome. The platform aims to be available in all 50 states.

In response to the report, DraftKings (NASDAQ:DKNG) released a statement,

“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions.”

Earlier this year, DraftKings (NASDAQ:DKNG) applied for a federal license to operate a prediction market only to withdraw it a few months later. Across the sports betting sector, FanDuel (FLUT) is reported to have held talks about partnering with Kalshi, which is one of the best-known regulated exchanges dedicated to trading on the outcome of future events.