DraftKings Launches DKeX Prediction Market Exchange Powered by Railbird

DraftKings has officially taken its prediction market business in-house with the launch of DKeX, a proprietary prediction market exchange that gives the company direct control over its event contracts, trading infrastructure, and future product development.

The new platform is powered by Railbird Technologies, the federally regulated designated contract market (DCM) that DraftKings acquired in late 2025. Rather than relying on third-party providers for prediction markets, the operator will now create and manage its own event contracts through DKeX, marking another major step in its expansion beyond traditional sports betting.

The exchange will be integrated directly into the DraftKings Sportsbook & Casino app, allowing customers to access prediction markets alongside the company's existing sportsbook and casino products.

Railbird Acquisition Begins Paying Off

Before acquiring Railbird, DraftKings offered prediction markets through partners such as CME Group and Crypto.com. The Railbird deal gave the company something much more valuable than additional content. It provided DraftKings with a CFTC-regulated exchange and the technology needed to operate its own prediction market platform.

That means DraftKings can now build, launch, and manage event contracts internally instead of depending on outside providers.

"DKeX provides a vertically integrated foundation for DraftKings Predictions," CEO Jason Robins said in a statement. "It strengthens our prediction markets content and capabilities, gives us greater control over the technology that powers those offerings, and enables us to move faster as we continue enhancing our unified app."

The launch represents another milestone in DraftKings' effort to expand its prediction market offering, which first debuted in December and has since grown to become available in 48 states. Maine and New Hampshire remain the only exceptions.

Prediction Markets Continue to Expand

Since launching DraftKings Predictions, the company has steadily added features that closely resemble a traditional sportsbook experience.

Customers can now trade player props, futures markets, parlay-style combination contracts, international sporting events, and access live prediction markets while games are taking place. According to DraftKings, combination contracts have proven particularly popular, with more than 30% of eligible customers using the feature since it launched in May.

The company also reported strong growth in the product's trading activity. During May, annualized consumer volume increased 24% month over month, while total annualized trading volume rose 34%, suggesting prediction markets continue gaining traction among DraftKings users.

Jeanine Hightower-Sellitto, Senior Vice President and General Manager of Prediction Markets, said DKeX creates new opportunities for the company to continue expanding its offerings ahead of some of the busiest periods on the sports calendar.

Read Also: 

• Polymarket Hit With Lawsuit Over Alleged Deceptive Marketing Practices

• North Carolina Casino Expansion Faces Blow After Lumbee Amendment Rejected

Analysts See Long-Term Opportunity

Industry analysts believe the launch of DKeX could significantly strengthen DraftKings' position in the growing prediction market sector.

In a recent research note, analysts at Citizens said the company has so far generated relatively little revenue from operating its own exchange because most trading activity has continued flowing through outside providers. They expect that to change as DraftKings gradually shifts more trading volume onto DKeX, particularly ahead of the upcoming NFL season.

The analysts also highlighted market making as one of the biggest long-term opportunities. By operating its own exchange, DraftKings can potentially capture additional revenue beyond simply offering event contracts, giving the company another avenue for growth as competition in the prediction market industry continues to intensify.

The launch of DKeX also reflects a broader trend across the sector. Rather than simply participating in prediction markets, major operators are increasingly investing in the infrastructure that powers them, giving companies greater flexibility over product development while reducing their reliance on third-party exchanges.