iGaming Daily Ep 633: DraftKings Doubles Down: Entering the Prediction Markets Arena
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Oct 27, 2025 Jessica Welman, Managing Editor with deep iGaming and prediction market expertise, joins to discuss DraftKings' bold entry into the prediction markets. She outlines their recent acquisition of Railbird and the launch of their new Predictions app. The conversation touches on the NFL's surprising partnerships with Kalshi and Polymarket, highlighting significant industry shifts. Jessica also explores how prediction markets are evolving and whether sports will soon be included in these new offerings, as well as the potential risks involved.
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DraftKings’ Strategic Railbird Buy
- DraftKings acquired Railbird to enter CFTC-approved prediction markets and launch a dedicated Predictions app.
- The deal reportedly costs $50m up front with earnouts up to $250m, reflecting big upside but legal risk.
Front-Runners And Fast Movers
- Underdog and PrizePicks moved fastest by integrating event contracts via technical partners rather than full DCM ownership.
- Large operators like DraftKings and FanDuel trail tactically due to licensing and regulatory exposure.
Delay Sports — Prep Non-Sports Markets
- Avoid launching full sports markets immediately because state regulators may revoke sportsbook or casino licenses.
- Prepare non-sports and pop-culture markets now so you can switch on sports quickly if legal clarity arrives.