DraftKings Expands into Prediction Markets with Railbird Acquisition
- DraftKings has acquired prediction market company Railbird to launch its DraftKings Predictions app.
- Weekly prediction market volume surpassed $2 billion for the first time, highlighting growing interest.
- Railbird holds a designated contract market license from the Commodities Futures Trading Commission, allowing it to self-certify and offer event contracts.
- The new app will initially target states without legal sports betting, according to a source familiar with the company.
- DraftKings’ stock saw a 3.21% increase in pre-market trading following the acquisition announcement.
The acquisition of Railbird by DraftKings marks a significant move into the prediction market industry, which is experiencing rapid growth as weekly volumes exceed $2 billion. This strategic expansion will focus on states where sports betting is not yet legalized, leveraging Railbird’s CFTC license to provide diverse event contracts.
With its new prediction market app, DraftKings aims to capitalize on the burgeoning interest in such platforms, potentially expanding its offerings into sports event contracts and other categories. (Source)
