Railbird Exchange and what DraftKings paid for it
Railbird Exchange is a CFTC-designated contract market that DraftKings bought, with its parent Railbird Technologies, on 21 October 2025. DraftKings booked the deal at $84.8 million at fair value, of which $37.8 million is contingent; further performance payments are capped at $200 million.
What it is
Railbird Exchange is a CFTC-designated contract market that DraftKings bought, with its parent Railbird Technologies, on 21 October 2025.
a federally licensed exchange designated by the Commodity Futures Trading Commission
Railbird Exchange, LLC Designated 06/13/2025
DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced the acquisition of Railbird Technologies Inc. and its wholly owned subsidiary, Railbird Exchange, LLC
What DraftKings paid
DraftKings booked the deal at $84.8 million at fair value, of which $37.8 million is contingent; further performance payments are capped at $200 million.
total consideration of $84.8 million, including contingent consideration of $37.8 million
the Company paid upfront consideration in the amount of approximately $48.6 million, consisting of approximately $19.9 million in cash consideration and 0.9 million shares of the Company’s Class A common stock, valued at approximately $28.7 million
with additional consideration of up to $200.0 million
The “up to $250 million” figure is a press report citing a source; DraftKings’ own filings confirm the $200 million cap and an upfront payment near $48.6 million.
Under the transaction, DraftKings is paying $50 million upfront, with an additional $200 million in performance incentives
Financial details were not disclosed when DraftKings announced Tuesday it was buying the upstart prediction-markets platform.
What it is for
Railbird is the exchange behind DraftKings Predictions, DraftKings’ entry into prediction markets.
The acquisition supports DraftKings’ broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts.
Railbird Exchange, LLC, a registered designated contract market (“DCM”) licensed by the CFTC.
Not yet in any material way: DraftKings says Railbird’s revenue and earnings since the deal through 30 June 2026 were not material.
from the Railbird Acquisition Date through June 30, 2026, which is included within revenue and loss attributable to common stockholders in the Company’s condensed consolidated statements of operations, is not material.
DraftKings and the other listed companies in prediction markets are on prediction market stocks.
