DraftKings, a major player in the sports betting arena, is expanding its reach into prediction markets by partnering with Polymarket. This move signifies the growing convergence of sports betting and event wagering, with DraftKings acquiring Railbird, a Commodity Futures Trading Commission (CFTC)-licensed exchange, to launch its "DraftKings Predictions" mobile platform.
Polymarket will serve as the designated clearinghouse for DraftKings' new prediction market endeavors. Clearinghouses act as intermediaries between buyers and sellers, ensuring the integrity of trades and managing financial risk. Polymarket's infrastructure will essentially function as the backend for DraftKings' prediction market arm. Shayne Coplan, the founder of Polymarket, confirmed the partnership via a social media post.
The DraftKings Predictions app is expected to offer users opportunities to trade on real-world outcomes across finance, culture, and entertainment. This could include wagering on events like the performance of the S&P 500 or the winner of the Best Picture Oscar. Unlike traditional sports betting, these contracts will operate more like mini-investment positions, where users buy and sell shares based on their belief in a specific outcome.
DraftKings' entry into prediction markets follows a pattern of sports betting companies expanding into this space. Faced with the increasing popularity of prediction markets, DraftKings' acquisition of Railbird allows it to compete more directly with established platforms like Polymarket and Kalshi. The company will pay up to $250 million for Railbird, including $50 million upfront and an additional $200 million in performance incentives.
This move occurs amidst increasing competition and activity in the prediction market space. Kalshi and Polymarket both boast valuations exceeding $10 billion. In October 2025, Polymarket secured an investment of up to $2 billion from Intercontinental Exchange (ICE), valuing the company at approximately $8 billion.
Notably, the National Hockey League (NHL) recently announced multiyear deals with both Kalshi and Polymarket to be "official prediction markets partners" of the league. These agreements grant both platforms access to proprietary NHL data and the right to use NHL logos.
Prediction markets have gained traction for allowing users to bet on various future events, including economic indicators, weather patterns, awards, and political and legislative outcomes. Polymarket, founded in 2020, allows participants to deposit USDC cryptocurrency and trade shares representing the likelihood of specific outcomes.
DraftKings' expansion into prediction markets reflects a broader trend of diversification within the gaming industry. By moving beyond traditional sports betting, DraftKings aims to tap into new growth opportunities and cater to a wider audience.
The launch of DraftKings Predictions is anticipated in the coming months, pending regulatory review. The app is expected to feature a user-friendly design, potentially blending the aesthetics of the DraftKings sportsbook with the data-driven appeal of an exchange. The company's source told Yahoo that the prediction offerings will focus on states without legal sports betting and may expand into additional categories over time.
