DraftKings is transferring additional into federally supervised prediction markets after Railbird Trade submitted its first group of occasion contract certifications to the Commodity Futures Buying and selling Fee.
The filings appeared within the CFTC’s Designated Contract Market products database underneath the identify “REX.” They embrace six binary choice templates linked to sports activities outcomes and participant performances: GAMEWIN, GAMESPREAD, GAMEPROPERTY, ENTITYSTAT, ENTITYOUTPERFORM, and ENTITYACHIEVEMENT. Regulators categorised the submissions underneath “Occasion” and “Binary Possibility” merchandise after the certifications have been filed Might 22.
It seems to be the strongest sign to this point that DraftKings plans to construct a a lot bigger sports-focused prediction market enterprise by way of Railbird Trade, the federally licensed exchange operator the company bought last year.
Information of the submitting first surfaced on X by way of PredictionMarketPulse, which referred to as the submission Railbird’s “first product certifications with the CFTC.”
DraftKings and Railbird sports activities contracts transfer nearer to mainstream buying and selling
A number of of the newly licensed templates intently resemble commonplace sportsbook wagers, though they’d function inside a federally regulated derivatives construction as an alternative of a state gaming framework.
GAMEWIN and GAMESPREAD seem similar to moneyline and point-spread betting. ENTITYSTAT and ENTITYOUTPERFORM appear designed for participant efficiency markets, whereas ENTITYACHIEVEMENT might assist contracts tied to information, awards, or statistical milestones.
The merchandise fall underneath the Commodity Trade Act and CFTC oversight slightly than conventional state sports activities betting guidelines, which has more and more attracted consideration as prediction markets carve out an alternate route into sports-related buying and selling throughout the nation.
DraftKings first outlined its plans when it acquired Railbird Trade in 2025. The deal gave the corporate direct entry to a federally regulated designated contract market license. Round that point, DraftKings introduced plans for “DraftKings Predictions,” a separate platform centered on occasion contracts involving finance, leisure, tradition, and probably sports activities.
Since then, the corporate has continued increasing the initiative. Earlier this yr, DraftKings launched DraftKings Predictions across 38 states, together with California, Texas, Florida, and Georgia, the place standard on-line sportsbooks stay unavailable. Fairly than routing exercise by way of state gaming businesses, the platform processes buyer orders by way of federally regulated exchanges.
DraftKings additionally entered a partnership with Crypto.com’s derivatives exchange to extend the vary of occasion contracts out there on the platform.
The latest Railbird certifications recommend the corporate now needs to considerably improve its sports-related choices as competitors intensifies throughout the prediction market sector.
Corporations together with Kalshi, CME Group, and Crypto.com have all pushed deeper into sports activities occasion contracts through the previous yr. On the identical time, regulators proceed debating the place prediction markets cease and sports activities wagering begins.
State gaming regulators have began making use of further strain as federally regulated markets broaden. Nevada authorities recently stepped up enforcement efforts tied to prediction market merchandise, whereas Bank of America analysts warned regulatory uncertainty might grow to be a rising concern for gaming operators getting into the area.
Even so, DraftKings appears committed to the strategy. Though the newly licensed templates don’t create dwell markets instantly, self-certification stays a requirement earlier than launching merchandise underneath CFTC supervision.
Featured Picture: Through DraftKings Inc LinkedIn post
