DraftKings Acquires Railbird, Plans to Launch Its Own Prediction Platform

^{Pictured: Jason Robins, CEO of DraftKings}

American sportsbook DraftKings has acquired the prediction platform Railbird, a move that will enable the company to launch its own event-prediction service called DraftKings Predictions in the coming months, CNBC reports.

Railbird is licensed by the U.S. Commodity Futures Trading Commission (CFTC) to operate an exchange for event-based contracts. According to sources, DraftKings pursued the acquisition primarily for Railbird’s team and proprietary technology.

It remains unclear whether DraftKings will offer prediction markets on sports events, in addition to those on finance, culture, politics, and other topics. If such plans materialize, DraftKings Predictions will likely become available in states without licensed sports betting, such as California and Texas.

Gambling regulators in several U.S. states have repeatedly raised concerns about prediction platforms offering sports-related markets without proper betting licenses. The platform Kalshi, for example, has faced multiple legal challenges over similar issues. DraftKings is expected to take a more cautious approach to avoid comparable disputes.