Bettors are betting on everything everywhere

DraftKings just acquired predictions platform Railbird Technologies, scoring a CFTC license that paves the way to launch DraftKings Predictions. On this peer-to-peer platform, users can bypass their bookie and place bets with each other on everything from Nvidia’s stock price to who slaps who at the Oscars.

The sports-betting powerhouse has been getting punished by investors lately for letting upstart prediction platforms muscle in on its turf. For example, Kalshi recently began allowing its users to place bets on NFL games using uber-profitable parlay wagers, which helped the company score record-high trade volume earlier this month. So, DraftKings decided to take a page out of the competition’s book and try its hand at prediction markets.

DraftKings’ wager has already paid off: Shares jumped 3.21% today. Investors are especially excited about the prospect of DraftKings offering sports bets in major markets like Texas and California, where sports betting is illegal. Prediction markets are regulated by the CFTC, and therefore outside the jurisdiction of state regulators, and may present a loophole that DraftKings takes advantage of.

Crowded competition

Both Kalshi and Polymarket have only grown more popular in the months since the presidential election shone a spotlight on the entire prediction market. In fact, trading volume on both platforms just climbed above $2 billion for the first time ever last week, according to Bloomberg—beating the high-water mark they reached last November.

That’s why it’s unsurprising to see that they aren’t just sitting this one out: Today, Kalshi and Polymarket just landed their first Big 4 sports deal with the National Hockey League.

Terms like “Super Bowl” are off-limits on these platforms, which must get creative with phrases like “Pro Football Championship.” The new licensing agreement allows the prediction market players to use trademarked terms like “NHL” and “Stanley Cup,” and puts it on a more level playing field with DraftKings, which already has deals in place with the NHL, NFL, and a wide swath of leagues.

And the winner is…everyone?

“This feels less like a zero-sum cage match and more like the rise of a new sports-fintech multiverse,” said Running Point CIO Michael Ashley Schulman. “DraftKings brings scale, licensing muscle, and brand recognition. Kalshi brings regulatory chops, financial sophistication, and a Silicon Valley-style playbook. If regulation plays ball, both could score.”—JD