DraftKings went live with its prediction market product this week. The company bought Railbird Technologies back in October, a CFTC-certified contract market. But they’re not using it yet.
Instead, DraftKings partnered with CME Group to get things running. The Railbird Exchange will come later, though the company hasn’t said when.
The new product runs through a subsidiary called DraftKings Predictions. It’s registered with CFTC as an Introducing Broker. The company also holds membership with the National Futures Association.
Why DraftKings rushed this launch
Timing pressures likely drove this decision. FanDuel plans its own predictions product soon. And Kalshi just hit an $11 million valuation recently.
The operator needed to move fast. Waiting for Railbird Exchange might’ve cost them market position in a space that’s heating up quickly.
There’s another compelling reason: access to new states. DraftKings can now operate in 38 states total. That includes California, Florida, Georgia and Texas, places where sports betting remains illegal.
These massive markets were previously off-limits. Prediction markets offer a legitimate workaround that competitors already exploited.
What the platform offers users
DraftKings Predictions started with sports and financial contracts. Entertainment and culture-based contracts will arrive later, according to the announcement.
Users trade predictions through a mobile app and web platform. The product works like other prediction markets but carries DraftKings branding and infrastructure.
Corey Gottlieb, DraftKings’ Chief Product Officer, emphasised the platform’s competitive advantages. “We will create an unparalleled customer experience, leveraging key strategic relationships like ESPN and NBCUniversal,” he said. The company plans to “provide an authentic, real-time product that moves at the speed of sports.”
He added that DraftKings believes it’s “uniquely positioned to lead this space over the long term.” That’s based on their operational footprint and existing technology.
They’re running a promotional competition too. Customers can win $1 million using the new platform during the launch period.
How this changes competitive dynamics
DraftKings separated itself from rivals like Kalshi and Polymarket through responsible gaming tools. The platform includes deposit limits, cool-off periods and self-exclusion options, standard features in licensed gambling but rare in prediction markets.
This matters in states without sports betting regulations. The operator emphasised its commitment to player protection practices, potentially giving it an edge with regulators and concerned users.
The CME Group partnership gets DraftKings into the market now. But questions remain about when Railbird Exchange will actually go live. The company owns the infrastructure but isn’t deploying it yet.
That delayed rollout suggests either technical challenges or strategic calculations. Either way, DraftKings clearly prioritised market entry speed over using its proprietary exchange. The move lets them compete immediately while sorting out Railbird behind the scenes.
