DraftKings Acquires Railbird Technologies, Expands Into Prediction Markets

Sean Chaffin
Author Sean Chaffin
Published: Oct 24, 2025
Ali Raza
Fact Checker Ali Raza
Updated: Oct 24, 2025
DraftKings - Banner with Railbird partnership announcement.

DraftKings has announced the acquisition of Railbird Technologies, a niche tech firm specializing in event-based prediction markets. The move signals DraftKings’ intent to expand beyond traditional sports wagering into the fast-growing prediction-market space, where competitors like Kalshi and Polymarket have gained momentum.

Why It Matters

Prediction markets, which allow users to bet on outcomes of future events — ranging from politics to entertainment to sports props — have grown rapidly in the past two years. While U.S. regulators have struggled to define where these products fit under gambling laws, DraftKings’ entry represents a major vote of confidence in their long-term viability.

By acquiring Railbird, DraftKings gains proprietary technology for pricing event contracts, integrating them into its existing sportsbook and iGaming ecosystem. Analysts suggest this could help DraftKings compete with both established sportsbooks and newer prediction-platform entrants. If you want to see how DraftKings already stacks up in terms of product range and user experience, check out our DraftKings review for a full breakdown.

Industry Context

The timing of the acquisition is significant. Just weeks earlier, the NHL signed licensing deals with Polymarket and Kalshi, a move that rattled traditional sportsbooks and NHL betting markets. Regulators have also stepped up scrutiny of how prediction markets overlap with gambling. Against this backdrop, DraftKings is positioning itself as the first mainstream sportsbook to offer prediction products under a familiar, regulated brand.

“Prediction markets represent a natural extension of what we already do,” said a DraftKings spokesperson. “This acquisition accelerates our ability to innovate, provide customers with new ways to engage, and expand our product suite responsibly within regulatory frameworks.”

Market Implications

DraftKings’ move could accelerate consolidation in the prediction-market sector, with smaller platforms either partnering or exiting as larger operators enter. It also raises new competitive dynamics: rather than only competing for sports betting handle, DraftKings is signaling its ambition to be a one-stop platform for all event-based wagering.

For customers, the acquisition may eventually translate to expanded betting menus, with options to wager on everything from award shows to political races alongside traditional sports markets.

Looking Ahead

The deal is still subject to regulatory review, but integration is expected to begin in 2026. DraftKings has not disclosed the purchase price, but sources suggest the transaction was structured with a mix of cash and stock. Industry observers will be watching how quickly DraftKings rolls out Railbird-powered products — and whether rival operators follow suit.

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