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Prediction markets are starting to catch the attention of major sportsbook operators, and now DraftKings is making moves that could bring them deeper into the space. Talks are reportedly underway between DraftKings and Railbird Exchange, a federally licensed prediction market platform that only recently received the green light to operate.
Good to know
Railbird Exchange received its DCM license from the CFTC in June 2025.
DraftKings previously applied for a federal license but pulled the filing in April.
Prediction markets offer a legal way to operate in states like Texas and California.
While no deal has been finalized, sources suggest DraftKings is in discussions to acquire Railbird Exchange. Railbird, which launched in 2021 and was founded by Miles Saffran and Edward Tian, became a federally approved platform after receiving a designated contract market license from the Commodity Futures Trading Commission (CFTC) on June 18.
Neither side is saying much. DraftKings stuck to its usual line, noting that it does not comment on any specific potential acquisition. Railbird also declined to speak on the matter.
What makes this interesting is DraftKings’ previous flirtation with prediction markets. Earlier in the year, the company submitted an application under “DraftKings Predict” with the National Futures Association, which would have granted them access to this market. However, the application was pulled in April with no public explanation.
Now, DraftKings might be shifting its approach—from building to buying. By acquiring a fully licensed operator like Railbird, the company could fast-track its entry into the market without needing to wait through a lengthy federal review.
FanDuel is watching this space, too. Back in June, iGaming.org reported that FanDuel had looked into forming a strategic partnership with Kalshi, another federally licensed prediction platform. Flutter Entertainment CEO Peter Jackson hinted that FanDuel is monitoring the prediction market space closely, suggesting that more movement could follow.
Prediction platforms like Kalshi and Railbird offer a unique advantage. Because they operate under federal licenses rather than state gambling frameworks, they can offer products in states where traditional sports betting is still off the table—California and Texas among them.