Overview
- DraftKings confirmed the Railbird acquisition and said its standalone DraftKings Predictions mobile app will launch in the coming months.
- Polymarket will act as the platform’s clearinghouse, and DraftKings said the product can connect to multiple exchanges to broaden available markets.
- Initial categories exclude sports, and the company has not committed to offering sports event contracts as it evaluates that option.
- Deal terms were not disclosed, but reporting indicates DraftKings may pay up to $250 million, including $50 million upfront and up to $200 million in performance incentives.
- The federal-exchange route positions DraftKings under CFTC oversight as several states and tribal authorities contest sports-related event contracts offered by prediction markets.