DraftKings mulls acquisition of prediction market Railbird Exchange

16 July 2025 at 6:12am UTC-4
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DraftKings is in talks to acquire Railbird Exchange, a federally licensed prediction market platform, as reported by Front Office Sports.

According to a Front Office Sports source, financial details have not been disclosed, and no deal has been finalized.

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A spokesperson for DraftKings told the publication, “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.”

DraftKings had previously sought a federal license to operate its own prediction market but withdrew its application in April.

Meanwhile, competitors are also exploring this space. FanDuel has reportedly held partnership talks with Kalshi, another federally licensed exchange known for sports prediction markets, which recently received a US$2 billion valuation after its latest round of funding.

Kalshi is fighting lawsuits and cease-and-desist orders in multiple states over regulatory and tax differences, with a tribe in New Mexico recently calling for the state to crack down on these gambling operations.

Prediction markets can operate in states like California and Texas that don’t allow traditional sports betting. Meanwhile, traditional sportsbooks require licensing before launching in each state and can’t operate in states without legal sports betting.

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