DraftKings to Launch Prediction Markets Platform
By Katherine Hamilton
DraftKings has made its debut into prediction markets.
The sports-betting company said Tuesday it acquired Railbird Technologies, which owns a licensed exchange for trading contracts.
The Boston-based company is also launching DraftKings Predictions, a forthcoming mobile app that will allow users to trade contracts on the outcomes of events in finance, culture and entertainment. The app, which is set to debut in the coming months, will be able to connect to multiple exchanges and may add more categories over time, DraftKings said.
The moves are part of DraftKings broader strategy to enter prediction markets, which offer users a way to place money on events including sports games without being subject to the same strict regulations as traditional sports betting.
DraftKings shares jumped 6% to $35.52 in after-hours trading Tuesday.
DraftKings is aiming to grow its addressable market and keep up with competitors by dipping a toe into prediction markets. Rival FanDuel announced a partnership with a prediction markets platform earlier this year.
Kalshi, a leader in prediction markets, has been encroaching on the sports-betting industry. It gained traction during the 2024 presidential election when users were putting money on who they thought would win. Last month, Kalshi launched a same-game parlay product, one of the more profitable products that DraftKings and FanDuel offer.
DraftKings Chief Executive Jason Robins said earlier this year he was hesitant to make a move in prediction markets because of some of the controversy surrounding them. Because prediction markets circumvent sports-betting taxes and regulations, several state governments and tribal groups have criticized them.
Prediction markets are also facing questions about how they should be regulated. Right now, the Commodity Futures Trading Commission oversees the markets. Railbird is federally licensed by the CFTC.
"We are excited about the additional opportunity that prediction markets could represent for our business," Robins said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
October 21, 2025 16:57 ET (20:57 GMT)
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