DraftKings reportedly in talks to acquire regulated prediction market Railbird 

DraftKings is in discussions to acquire Railbird, a federally regulated prediction market platform, according to Front Office Sports. The deal, if finalized, would mark a significant move as sportsbooks increasingly explore partnerships with regulated event-based exchanges ahead of the football season.

Founded in 2021 by former Point72 analysts Miles Saffran and Edward Tian, New York-based Railbird received approval in June 2025 from the U.S. Commodity Futures Trading Commission (CFTC) to operate as a Designated Contract Market (DCM). The license makes Railbird one of the few federally regulated prediction markets in the United States.

The platform allows users to buy and sell contracts based on real-world events, including political outcomes, economic indicators, sports results, and weather patterns. It is backed by a roster of investors that includes the CEO of SeatGeek and several venture capital firms, and it aims to be accessible in all 50 states.

DraftKings did not confirm the talks but issued a statement saying, “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,” as reported by Front Office Sports.

The company had previously sought federal approval to operate its own prediction market but withdrew its application in April. “DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration,” a spokesperson said.

The potential acquisition comes amid increasing overlap between sportsbooks and prediction markets. Last month, FanDuel was reported to have held talks with Kalshi, another CFTC-regulated platform that has partnered with Robinhood and expanded into sports outcomes. Kalshi, however, has faced pushback from regulators, receiving cease-and-desist orders in at least seven states, including Nevada and New Jersey. It has responded with lawsuits in three states and secured early legal wins in two.

“Every major sportsbook is lining up partnerships,” an industry source told Front Office Sports, which first reported the DraftKings-Railbird talks.

Unlike sportsbooks, which are regulated on a state-by-state basis, federally licensed prediction markets can operate in states such as California and Texas, where sports betting remains illegal. That distinction could make platforms like Railbird a valuable strategic asset for firms seeking broader market access.