DraftKings eyes Railbird deal to enter prediction market
DraftKings is reportedly in talks to acquire Railbird Exchange, a newly federally licenced prediction market platform based in the United States. The details of the reported deal are still under wraps.
A company spokesperson told SiGMA News, “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.” At the time of publishing this report, Railbird did not respond to a request for comment.
Previous attempts to enter prediction markets
The company previously applied for a federal licence to operate its own prediction market, only to quietly withdraw in April. At the time, a spokesperson was quoted as saying, “DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration.”
Railbird was founded in 2021 by Miles Saffran and Edward Tian, 2 ex research analysts at Point72. Saffran conducted research on the gaming and fintech sectors at P72, the hedge fund founded by Steve Cohen. Tian received a dual degree from Columbia in math-financial/financial econ
— Matt Rybaltowski (@MattRybaltowski)
Railbird is one of the few platforms in the US to secure federal licensure to operate a prediction market. It was founded in 2021 by Miles Saffran and Edward Tian, who have previously worked as Point72 Asset Management executives. A potential acquisition by DraftKings of Railbird, which is yet to launch, would mark a shortcut for the gambling company to access prediction markets, skipping the lengthy licensing process it would have to undergo had it continued with its application. The move has been termed as strategic as it comes ahead of the football season.
FanDuel and Kalshi collaboration on the horizon?
DraftKings is not alone in exploring opportunities in this space. Last month, Front Office Sports reported that Kalshi, the rapidly growing, US-based prediction market platform, has begun exploratory talks with gambling and betting giant, and DraftKings’ rival FanDuel.
In 2025, prediction markets like Kalshi are almost making traditional sports betting feel outdated. Almost. Rather than wagering on the outcome of a match, users on Kalshi can place bets on anything from the next papal election to the price of eggs, the number of deportations in Trump’s first year back in office, the colour of a coach’s shirt — or even, on Kalshi’s main competitor, Polymarket, the likelihood of war.
A partnership could allow Kalshi to move beyond its current binary model of simple yes/no contracts and into more traditional sports betting formats. “It’s only a matter of time until parlays, point spreads, over/unders, and eventually player props are available,” .
While nothing has been confirmed — neither company has publicly acknowledged the talks — the deal could be a game changer. FanDuel brings over a decade of experience and 12 million users; Kalshi brings the boldness of a startup that successfully challenged its own regulator and emerged with permission to operate in all 50 U.S. states — even though only 39 currently allow sports betting.
Kalshi’s legal victory and funding milestone
Meanwhile, Kalshi has recently secured $185 million in Series C funding, pushing its valuation to $2 billion. The funding round was led by crypto-focused investor Paradigm, with participation from Sequoia Capital, Multicoin, Neo, Bond Capital, and Citadel Securities CEO Peng Zhao. Kalshi gained significant traction after winning a court case against the CFTC last year, allowing it to list contracts tied to the US presidential election. The ruling opened the door for other players in the sector and affirmed the legal status of Kalshi’s operations in the country.
