DraftKings is in talks to acquire Railbird Exchange, a newly licensed federal prediction market operator, according to a report by Front Office Sports.
The discussions, which reportedly remain ongoing, come just weeks before the start of football season, traditionally the busiest and most competitive period in the US sports betting calendar.
According to the report, no deal has been finalised and financial terms have not been disclosed.
The potential acquisition would represent a major move by DraftKings into the federally regulated prediction market space, which has been an area of interest for sportsbooks in recent months.
The sports betting giant previously registered a business called “DraftKings Predict” with the National Futures Association to run such a platform, but withdrew its application in April.
A company spokesperson told NEXT.io: “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 continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration.”
Some expect growing convergence between sportsbooks and prediction markets, particularly as operators seek ways to reach consumers in major states like California and Texas that have yet to legalise traditional sports betting.
Railbird received approval from the Commodity Futures Trading Commission (CFTC) to act as a Designated Contract Market in May.
Market leader Kalshi, alongside Crypto.com and Robinhood, has faced legal challenges from state gaming regulators that its sports contracts represent illegal sports betting, but so far has prevailed in the courts.
NEXT.io has reached out to DraftKings and Railbird for comment.
Dingnews.com 17/07/2025