Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
If you can't beat them, join them? US sports betting giant Draftking acquires licensed exchange, joins the prediction market battle

If you can't beat them, join them? US sports betting giant Draftking acquires licensed exchange, joins the prediction market battle

ForesightNewsForesightNews2025/10/22 16:13
Show original
By:ForesightNews

DraftKings has announced the acquisition of Railbird Exchange, which holds a CFTC license, seeking to expand beyond sports betting and meet users' demand to wager real money on future events.

DraftKings announced the acquisition of Railbird Exchange, which holds a CFTC license, seeking to open up a new battlefield beyond sports betting to meet users' demand for wagering real money on future events.


Written by: Dong Jing

Source: Wallstreetcn


U.S. sports betting giant DraftKings has officially entered the prediction market sector by acquiring a federally regulated trading platform, marking the company’s most aggressive move yet in response to emerging competitive threats.


On October 22, it was reported that DraftKings announced on Tuesday (October 21) the acquisition of Railbird Technologies Inc., an exchange licensed by the U.S. Commodity Futures Trading Commission (CFTC), seeking to open up a new battlefield beyond sports betting to meet users' demand for wagering real money on future events.


After the announcement, DraftKings’ stock price rose as much as 8.3% in after-hours trading. Previously, the stock had been under pressure for months due to the rise of prediction markets, and last week suffered further losses after media reports that CME Group was preparing to enter the sports betting sector.


If you can't beat them, join them? US sports betting giant Draftking acquires licensed exchange, joins the prediction market battle image 0


This acquisition positions DraftKings to become one of the first sports betting companies to offer federally regulated event contracts, but also thrusts it into a regulatory arms race—as Wall Street financial giants and gambling regulators fiercely compete in the prediction market sector.


Defensive Strategy Turns Offensive


For betting companies whose stock prices have recently been under pressure, this acquisition represents a strategic shift.


Citizens stock analyst Jordan Bender stated that acquiring Railbird will enable DraftKings to fight back against competitors and, by entering states like California and Texas where traditional sports betting is banned, potentially double its addressable market size.


“The announcement around the strategy should reassure investors. While prediction markets have pressured the stock price for months, the unknowns have now turned into an offensive strategy.”


In recent months, betting company stocks have generally struggled, with the rise of prediction markets seen as a threat to their business models. Emerging platforms such as Kalshi and Polymarket recorded record trading volumes last week, partly driven by wagers on sporting events.


New Business Layout and Regulatory Challenges


DraftKings plans to launch “DraftKings Predictions” on its mobile app, allowing users to trade binary outcome contracts related to finance, culture, and entertainment. The company’s CEO and co-founder Jason Robins stated in a release:


“We are excited about the additional opportunities prediction markets may bring to our business.”


A DraftKings spokesperson said the company has not yet decided whether to offer contracts related to sporting events.


According to reports, this cautious approach reflects potential regulatory resistance—state gambling regulators have signaled they will not allow companies under their jurisdiction to simultaneously offer federally regulated event contracts.


Several emerging platforms, such as Kalshi and Polymarket, have already been criticized by state regulators for using federal licenses to offer sports-related wagers in jurisdictions where local laws prohibit them.


Blurring Boundaries Between Finance and Gambling


This acquisition comes as the boundaries between Wall Street and the gambling industry are increasingly blurred.


Financial industry competitors such as CME and Intercontinental Exchange are weighing how to leverage their licenses to enter gambling-related markets. CME previously announced a partnership with FanDuel to offer event contracts linked to financial markets and economic indicators.


Railbird was founded in 2021 by two former analysts from Point72 Asset Management (under hedge fund manager Steven Cohen), participated in the Y Combinator startup accelerator program, and in June this year received CFTC approval as a designated contract market.


Analysts point out that this cross-industry competition highlights the enormous commercial potential of prediction markets, as well as the tension between federal and state regulatory authorities, and is expected to reshape the landscape of the gambling and financial derivatives industries.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ripple Labs Eyes Lease of Brookfield Corp’s Latest London High-rise

Negotiations Underway for Premium Office Space in London's Financial District

Coineagle2025/10/22 20:42
Ripple Labs Eyes Lease of Brookfield Corp’s Latest London High-rise

Galaxy Digital’s Q3 Net Income Skyrockets to $505M, a Staggering 1546% Increase from Q2

Record-Breaking Trading Activity Spurs Unprecedented Quarterly Surge in Earnings for Digital Asset Firm

Coineagle2025/10/22 20:42
Galaxy Digital’s Q3 Net Income Skyrockets to $505M, a Staggering 1546% Increase from Q2

The era of permanent quantitative easing by the Federal Reserve is coming—where are the opportunities for ordinary people?

The article analyzes the background of the Federal Reserve potentially ending quantitative tightening and shifting towards quantitative easing, explores the current liquidity crisis facing the financial system, compares the differences between 2019 and the present, and suggests that investors hold gold and bitcoin to cope with possible monetary expansion. Summary generated by Mars AI. This summary is produced by the Mars AI model, and its accuracy and completeness are still being iteratively improved.

MarsBit2025/10/22 19:43
The era of permanent quantitative easing by the Federal Reserve is coming—where are the opportunities for ordinary people?