DraftKings Makes Big Splash With Railbird Exchange Purchase

After months of negotiations, DraftKings is finally set to offer prediction markets.

The sports betting and DFS giant has announced a new deal to purchase Railbird Exchange, a recently licensed prediction market platform. The deal will help create the DraftKings Prediction platform, which will launch in the coming months. The operator has not confirmed if they plan to offer sports prediction markets. 

The purchase comes soon after FanDuel shared its plans to offer markets by the end of 2025.

DraftKings Predictions to Focus on Economy, Cultural Events

While DraftKings has refused to confirm its interest in offering sports prediction markets, it did share a few areas it plans to focus on to begin. Those include financial, cultural, and entertainment events that customers can wager on. 

The initial offering is similar to the one FanDuel plans to launch. These markets will allow them to enter the new industry without angering their DFS and sports betting partners. 

DraftKings did share plans to expand its offerings soon after launch, but refused to share what those could include.

DraftKings Negates FanDuel’s Head Start 

DraftKings has been in negotiations with Railbird for months now, with few updates on the progress of those talks. That led to concerns they would fail and force DraftKings to start over, but they ended up getting extra motivation to ensure the deal was approved ASAP.

When FanDuel announced its upcoming prediction market launch, it represented a massive win. The sports betting giant was going to beat their top rival to the new industry, allowing it to capture a larger market share. 

FanDuel’s head start has been minimized or possibly even erased by the new DraftKings deal, depending on how quickly they can launch the latest offering. 

Sports Markets Are Likely

While the leadership at FanDuel and DraftKings has discussed their interest in offering sports prediction markets, they have refused to confirm any firm plans to do so.

Some believe the lack of information stems from operators waiting to see how the industry’s legal status plays out. Operators like Kalshi and Robinhood are facing mounting lawsuits alleging they offer illegal sports betting. While no official rulings have been made, an advisory note from the CFTC, which regulates the industry, warned operators to prepare to exit some markets.

However, industry rumors suggest that FanDuel and DraftKings will both offer sports prediction markets soon. They tell the operators have already assessed the potential fallout, which could significantly cut DFS and sports betting revenue, and determined it is worth the risk. 

We should have a better picture by December, when court rulings come in and the new prediction platforms launch.