DraftKings Inc. (DKNG.US) is currently negotiating the acquisition of prediction market platform Railbird, according to sources. Headquartered in New York, Railbird operates as a federally regulated trading venue for event contracts. Founded in 2021 by former Point72 investment research analysts Miles Salfen and Edward Tian, the platform achieved a significant milestone in June 2025 by securing approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate as a designated contract market. This designation positions Railbird among America's select group of regulated prediction exchanges.

Backed by SeatGeek's CEO and multiple venture capital firms, as indicated by Y Combinator records, Railbird enables users to trade contracts tied to real-world outcomes. These instruments allow both individuals and businesses to speculate on diverse events—from economic indicators and policy decisions to weather patterns, entertainment developments, and sports results. Each contract's market price reflects collective probability assessments of specific outcomes. The platform aims to expand accessibility across all 50 U.S. states.

In response to acquisition speculation, DraftKings issued a standardized corporate statement: "As part of routine business operations, DraftKings engages in discussions with numerous companies across various matters. Consistent with policy, we refrain from commenting on specific negotiations." This development follows DraftKings' earlier attempt to enter prediction markets through a federal licensing application earlier this year—an initiative subsequently withdrawn months later.

Separately, within the sports betting sector, FanDuel—owned by Flutter Entertainment (FLUT.US)—previously explored collaboration opportunities with Kalshi, another prominent regulated exchange specializing in future-event contracts.