DraftKings, a leading U.S. sports betting platform, has acquired Railbird Technologies—a CFTC-regulated designated contract market (DCM) specializing in event-based contracts—to expand into prediction markets.
As part of this move, blockchain-based prediction platform Polymarket will serve as the official clearinghouse for DraftKings’ new “DraftKings Predictions” mobile app, handling trade verification, collateral management, and settlement to ensure secure and fair operations.
This partnership was announced by Polymarket founder Shayne Coplan on October 22, 2025, shortly after the Railbird acquisition news broke. DraftKings purchased Railbird founded in 2021 and CFTC-approved as a DCM in June 2025 for an undisclosed amount one report speculates around $250M.
Railbird’s platform enables regulated event contracts on non-sports topics like finance, entertainment, and culture, with potential expansion to sports in states without existing sports betting (e.g., California, Texas).
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Polymarket’s Role: Through its QC Clearing arm acquired from QCEX for $112M in June 2025, Polymarket will act as the backend intermediary, reducing counterparty risk and leveraging its expertise in decentralized prediction markets. This aligns with a recent CFTC no-action letter easing reporting requirements for event contracts.
DraftKings Predictions app is slated for release in the coming months, initially focusing on non-sports events to comply with regulations. CEO Jason Robins highlighted the combo of Railbird’s tech, DraftKings’ 28-state reach, and mobile expertise as a “win” for the $4B+ monthly prediction market sector.
Prediction markets like Polymarket and Kalshi have exploded in 2025, with October trading volumes already at $4.63B Kalshi leading at $2.87B. DraftKings’ entry pits it against these players while benefiting from Polymarket’s infrastructure.
Polymarket also inked a multi-year NHL licensing deal on the same day, signaling U.S. sports betting integration. This deal bridges traditional sports betting with crypto-native prediction markets, potentially accelerating mainstream adoption.
It could reshape competition, with DraftKings using its brand to capture non-crypto users, while Polymarket gains B2B revenue and regulatory credibility. However, concerns linger about blurring lines between gambling and finance, as noted by analysts. Shares of DraftKings rose ~2% post-announcement, though down 8% YTD.
DraftKings’ entry into prediction markets, leveraging Polymarket’s blockchain-based clearinghouse, bridges traditional sports betting with decentralized platforms. This could drive broader acceptance of prediction markets among non-crypto users, given DraftKings’ established brand and 28-state presence.
DraftKings becomes a direct competitor to platforms like Kalshi and Polymarket, which dominate with $4.63B in October 2025 trading volume. Its mobile expertise and regulatory compliance via Railbird’s DCM status may attract users seeking regulated alternatives, potentially pressuring standalone prediction platforms.
By serving as DraftKings’ clearinghouse, Polymarket secures a stable B2B revenue stream and enhances its regulatory credibility through QC Clearing’s CFTC alignment. This strengthens its position in the U.S. market, especially after its NHL licensing deal.
The blurring of gambling and financial speculation raises questions about consumer protection and market integrity. Analysts note potential risks of unchecked speculation in event contracts, which could invite stricter CFTC oversight.
The “DraftKings Predictions” app, focusing initially on non-sports events (e.g., finance, entertainment), could tap into states without sports betting, like California and Texas, expanding the $4B+ prediction market sector.
DraftKings’ stock rose ~2% after the announcement, reflecting optimism, though its 8% YTD decline suggests broader market challenges. X posts highlight excitement for innovative markets like crypto events, potentially boosting user engagement.
These dynamics suggest a transformative moment for prediction markets, balancing growth potential with regulatory and competitive hurdles.