:max_bytes(150000):strip_icc()/GettyImages-2214686183-14806ead6fdf4522aa352e150d5967cb.jpg "DraftKings Expands Into Prediction Markets Game With Railbird Acquisition")
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Key Takeaways
- DraftKings said it’s expanding into prediction markets with its acquisition of Railbird Technologies.
- Shares of DraftKings climbed Wednesday following the news, though they remained in negative territory for 2025.
DraftKings (DKNG) is expanding into the booming prediction markets business.
The online sports betting operator said Tuesday it is buying Railbird Technologies, which it said would support the company’s plans to offer regulated event contracts. Financial considerations of the deal were not disclosed.
Co-founder and CEO Jason Robins said the addition of Railbird “positions us to win in this incremental space.”
Why This Is Significant
Online prediction markets like Kalshi and Polymarket have surged in popularity this year as they’ve expanded into new markets, with sports betting representing a major driver of growth. That’s also pitted them against more heavily regulated online sports betting operators like DraftKings, and the move to buy Railbird could help it compete in the space.
With the purchase, DraftKings said it plans to launch “DraftKings Predictions” in the coming months, a mobile app allowing customers to trade regulated event contracts “on real-world outcomes across finance, culture, and entertainment.”
The move could help DraftKings compete more directly with offerings from prediction market operators Kalshi and Polymarket, which have seen their popularity and valuations soar this year.
Shares of DraftKings were up about 2% in recent trading following the news, though they remained down about 8% for 2025.
CORRECTION: This article has been updated to reflect DraftKings announced the acquisition on Tuesday.
