DraftKings acquires predictions platform Railbird

DraftKings has announced its acquisition of the predictions platform Railbird as it gears up to launch a new mobile platform named DraftKings Predictions in the upcoming months. Railbird, which is licensed by the Commodity Futures Trading Commission, specializes in offering an exchange for event contracts. The acquisition is aimed at leveraging Railbird's talented team and proprietary technology. DraftKings CEO Jason Robins expressed enthusiasm about the potential of prediction markets, stating, "We are excited about the additional opportunity that prediction markets could represent for our business. We believe that Railbird's team and platform—combined with DraftKings' scale, trusted brand, and proven expertise in mobile-first products—positions us to win in this incremental space." Prediction markets enable customers to trade on the outcomes of various events spanning finance, culture, and entertainment, allowing DraftKings to diversify its offerings beyond traditional sports betting. However, the involvement in prediction markets, particularly concerning election outcomes and sports, has sparked controversy. Several states, along with their gaming regulators and tribes, are actively pursuing legal actions to prohibit companies from trading on sporting outcomes, viewing it as unregulated gambling. Nevada is among those warning that companies could risk their gambling licenses if they include sports in their prediction markets. As DraftKings navigates this landscape, it is likely to concentrate on states that do not provide licensed sports betting, such as California and Texas, to avoid conflicts with jurisdictions where it currently operates. Moreover, the company is expected to implement advanced identity verification measures, commonly referred to as "know your customer" protocols, drawing on its extensive experience in the regulated gambling sector.