DraftKings Said to Be in Talks to Buy Prediction Market Firm Railbird
- 14 Jul 2025
- Gambling News
Rumor has it that DraftKings (NASDAQ: DKNG) is in talks to acquire Railbird, a startup that operates prediction markets.
On Monday, Front Office Sports announced the news. Three months after DraftKings withdrew an application with the National Futures Association (NFA) that, if accepted, would have paved the way for the gaming company to join the rapidly expanding prediction markets market, the rumors began to circulate. Regarding the rumor, Front Office received a statement from the Boston-based sportsbook operator.
"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,” according to the response.
The Commodity Futures Trading Commission (CFTC) last month authorized New York-based Railbird to function as a contract market platform in the United States. Miles Saffran and Edward Tian, both former employees of Point72 Asset Management, the family business owned by New York Mets owner Steven Cohen, formed the business in 2021.
Acquisitions Are Not a Fear for DraftKings
DraftKings, a very young company in its own right and much younger when it is publicly traded, has made acquisitions a common strategy to break into new, quickly expanding markets.
The gaming giant entered the rapidly expanding internet lottery market last year when it paid $750 million in cash and stock for internet lottery provider Jackpocket. DraftKings acquired a loyal client base with Jackpocket, some of whom may switch to iGaming and online sports betting, and leverage to further legalize online lottery services at the state level in the years to come.
Following that transaction, in August of last year, the gaming company acquired Simplebet Inc., a supplier of microbetting services. Because DraftKings owns Simplebet, the parent firm is well-positioned to profit from what many industry watchers predict will be a sustained surge in live or in-game betting.
These are only two instances of how DraftKings has strengthened its product line through acquisitions. Although it's unclear, Railbird might follow, which would enable DraftKings to reach desirable markets like California and Texas and fend off rival companies like Kalshi and Polymarket.
Railbird's Investor Roster Is Notable
Railbird obtained its first round of funding through the Y Combinator accelerator program in the winter of 2022. Y Combinator connects new businesses with venture capitalists, mentors, and seasoned investors. Multiple venture investors including Jack Groetzinger of SeatGeek support the prediction markets operator.
According to Crunchbase, which rates Railbird as a fast-growing company, the company has an 86% chance of obtaining another round of funding over the next six months.
Perhaps the fact that Crunchbase characterizes Railbird Exchange as a "likely" acquisition candidate adds to the mystery surrounding the DraftKings takeover speculation.
