Sports betting company DraftKings (DKNG) is reportedly in talks to buy Railbird, which is a regulated prediction market platform, according to Front Row Sports Exchange. Railbird is based in New York and was founded in 2021 by Miles Saffran and Edward Tian, who were both former analysts at the investment firm Point72. In June 2025, the company received approval from the U.S. Commodity Futures Trading Commission to operate as a Designated Contract Market, making it one of the few legally regulated prediction markets in the U.S.
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Interestingly, Railbird’s platform allows users to buy and sell contracts based on the outcomes of real-world events. These contracts cover a wide range of topics, including the economy, public policy, weather, entertainment, and sports. In addition, the price of each contract can be viewed as the market’s overall belief about how likely a certain outcome is. For example, if a contract pays out $1 for a specific outcome and it is trading at $0.30, the market is essentially assigning a 30% probability to that outcome. This could be useful for investors who build financial models that require probabilistic inputs.
However, before investors get excited, DraftKings responded to the report by saying that it regularly talks with many companies as part of its usual business activity but does not comment on specific discussions. Moreover, it is worth noting that earlier this year, DraftKings applied for a federal license to run its own prediction market but later withdrew the application. Still, other major players in the sports betting industry are also exploring this space. For example, FanDuel (FLUT) has reportedly discussed a possible partnership with Kalshi, which is one of the best-known regulated exchanges focused on trading future event outcomes.
Is DKNG Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DKNG stock based on 27 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average DKNG price target of $53.96 per share implies 25% upside potential.
