DraftKings Acquires Railbird, Plans Prediction Markets Launch

DraftKings has officially entered the prediction markets sector through its acquisition of Railbird Technologies, the federally regulated parent company of Railbird Exchange. The company plans to launch a new mobile app called DraftKings Predictions, which will allow users to trade regulated event contracts on outcomes spanning finance, culture, and entertainment, though notably without including sports event contracts at this time due to regulatory concerns. This move positions DraftKings to potentially expand into states where sports wagering is not currently legal and leverage its existing customer base across many states. The acquisition reflects DraftKings' strategy to diversify beyond its core sports betting and online casino offerings, where sports revenue currently represents 61% of its total sales. Investors responded positively to the announcement, pushing DraftKings stock up in after-hours trading. CEO Jason Robins emphasized confidence in combining Railbird’s platform with DraftKings’ brand and mobile expertise to succeed in this emerging market segment.