DraftKings is reportedly in talks to acquire Railbird Exchange, a prediction market platform that recently obtained a federal license from the Commodity Futures Trading Commission (CFTC).
Front Office Sports reported that the sports betting and gaming platform is in talks with Railbird; however, the company did not confirm any discussions.
A DraftKings spokesperson stated, “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.”
Railbird Exchange obtained approval from the CFTC but is yet to launch its prediction markets site, so there may still be time for DraftKings to integrate the launch into its platform.
DraftKings Interest In Prediction Markets
DraftKings had previously applied for its own license to launch prediction markets; however, it withdrew the application in April. Commenting at the time, a spokesperson commented, “DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration.”
CEO Jason Robins commented on prediction markets in May, stating “I think, as it continues to grow, it’s going to continue being a powerful lever that this is happening whether you want it to or not, so do you want to do it in a way that makes sense — if you’re a California tribe, or if you’re a state that hasn’t legalized it yet — that allows you to prosper, or do you want to watch it happen somewhere else? I think that’s something that everyone’s talking about right now.”
He did not indicate any immediate plans for DraftKings to enter the space, but the operator will not want to give up any of its share of the US sports betting market.
Sports Prediction Markets Expanding Despite Opposition
Since Robins’s comments, Kalshi has led the expansion of sports prediction markets, and the platform now offers markets on almost every major sporting event.
States and tribes have continued to oppose the expansion, with 34 state representatives, over 60 tribes, and the American Gaming Association (AGA) – of which DraftKings is a member – filing briefs against Kalshi in its court case in New Jersey.
The CFTC, which regulates Kalshi’s markets, has shown no sign of limiting the expansion, however. And that looks unlikely to change as Kalshi board member Brian Quintenz prepares to take up the position of CFTC chair.
Who is Railbird Exchange?
Railbird Exchange could provide an entry into the prediction markets space for DraftKings, and it may be cheaper and easier to launch a partnership than with more established platforms such as Kalshi, Crypto.com, or Polymarket.
The company was founded in 2021 by former Point72 analysts Miles Saffran (CEO) and Edward Tian (COO). The startup received early investor interest and has been developing its platform with a small team based in New York over the past few years.
In June this year, it was granted approval by the CFTC and looks set to launch in the near future, with markets in politics, entertainment, and sports.
Mike Saffran, CEO & Co-founder, commented, “There is real demand for people to put their money behind their views, and we are excited to help shape this space from the ground up.”
If the talks with sports betting giant DraftKings are fruitful, then the platform would be able to have a far greater influence in shaping the prediction markets space.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
