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DraftKings opens dialogue to acquire Railbird Exch...

DraftKings logo / DraftKings is said to have commenced discussions to acquire the prediction market Railbird Exchange. 

DraftKings is alleged to have commenced discussions to amass the prediction market Railbird Change. 

After the betting large submitted after which pulled an utility to register ‘DraftKings Predict’ with the Nationwide Futures Affiliation, it seems the corporate has selected one other path to enter the prediction market house.

As initially reported by Front Office Sports, DraftKings is at present in talks over a possible deal to take over the fledgling platform often called Railbird Change. It’s a newly licensed designated contract market (DCM), having simply acquired certification from the CFTC on June 18. 

Arrange in 2021 by former monetary analysts Miles Saffran and Edward Tian, Railbird is but to launch, however the press launch confirming its CFTC approval added that it was “anticipated to open for buying and selling later this yr.”

If a takeover does materialize, DraftKings would change into the primary main sportsbook operator to enterprise into the rising prediction markets business. 

That will not be a shock given the corporate’s early efforts to launch its personal platform, however throughout the broader business, there’s a rising indication that sportsbooks and prediction markets will transfer nearer collectively within the coming months. 

FanDuel has already had talks with prominent prediction market Kalshi, though no resolution has been reached.

New markets and development alternatives

One of many key points of interest for the large corporations is that sportsbooks are regulated on a state-by-state foundation, in comparison with the federal licensing system that the prediction platforms are certain by. 

This opens up the potential for brand spanking new markets and development alternatives in huge states similar to California and Texas, the place authorized sportsbooks are at present prohibited.

“DraftKings speaks to a wide range of corporations relating to varied issues within the regular course of enterprise, and it’s our normal coverage to not touch upon the specifics of any of these discussions,” a spokesperson for the sportsbook supplier advised FOS. 

DraftKings was additionally not too long ago ordered to refund $3M after a Connecticut DCP advertising investigation.

Whereas prediction markets are on the rise, there may be nonetheless uncertainty that surrounds their proliferation and exercise. 

The legality of the prediction markets (contracts) remains to be to be confirmed and set, however current court docket instances have largely been determined of their favour. 

Kalshi has confronted serial lawsuits, and the broader litigation is ongoing, in addition to cease-and-desist orders from regulators in not less than seven states: Nevada, New Jersey, Illinois, Maryland, Ohio, Montana, and Arizona. 

In response, the corporate has counter-sued regulators in three of these states, (Nevada, New Jersey and Maryland), with notable victories secured in Nevada and New Jersey. 

The instances are ongoing, however Kalshi stays operational in these states.

Picture credit score: DraftKings

The submit DraftKings opens dialogue to acquire Railbird Exchange prediction market appeared first on ReadWrite.

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