DraftKings in Talks to Acquire Railbird Exchange
According to Front Office Sports, DraftKings is in discussions to acquire Railbird Exchange, a newly licensed prediction market platform. This could potentially expand DraftKings’ reach into futures trading.
DraftKings and Railbird’s Potential Deal
DraftKings, a top sports betting company, is discussing a deal to acquire Railbird Exchange, a New York-based platform that just got a federal license from the Commodity Futures Trading Commission (CFTC).
Railbird’s license lets it run a legal prediction market in the U.S., where people can bet on things like stock indexes, carbon credits, or maybe sports.
The deal’s price isn’t public, and it’s not done yet. A DraftKings spokesperson told Front Office Sports, “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 those discussions.”
The talks show sportsbooks and prediction markets might soon work together more.
Railbird’s Role and State Pushback
Railbird, started in 2021 by Miles Saffran and Edward Tian, helps businesses in fields like hotels and entertainment manage risks. Saffran called the CFTC license “Day 1” for Railbird, saying it offers “reliable, real-time information” for users.
While Railbird’s website doesn’t mention sports yet, it might offer sports contracts like its rival Kalshi. But some states, like Nevada and New Jersey, argue these markets act like illegal sports betting.
DraftKings, which once tried for its own prediction market license but backed off, is watching this space closely while juggling state rules.
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