TLDR
- DraftKings acquired CFTC-regulated Railbird and will launch DraftKings Predictions app with Polymarket serving as clearinghouse
- Polymarket pursuing $12-15 billion valuation in new funding talks, up from $1 billion valuation in June 2025
- October prediction market volumes reached $4.63 billion across Polymarket and Kalshi, breaking September’s $4.17 billion record
- Polymarket weekly trading hit $2 billion during week ending October 19, the platform’s highest ever
- Intercontinental Exchange invested $2 billion in Polymarket earlier this month at $8 billion valuation
DraftKings completed its acquisition of Railbird this week and announced plans to launch a prediction market platform. The sports betting giant will use Polymarket as its designated clearinghouse for the new venture.
Railbird received CFTC regulatory approval as a designated contract market in June. DraftKings purchased the platform for an undisclosed sum on Tuesday.
The new DraftKings Predictions mobile app will debut in the coming months. The platform will cover markets spanning finance, culture, entertainment and sports.
Polymarket CEO Shayne Coplan confirmed the partnership on X Wednesday. The clearinghouse will verify trades, hold collateral and settle contracts between participants.
DraftKings stated the product will connect to multiple exchanges. This approach will enable the company to offer a wide range of markets to users.
The acquisition represents DraftKings’ first crypto-related move since shuttering its NFT marketplace in July 2024. Polymarket obtained its clearinghouse through purchasing QCEX for $112 million in June.
Prediction Market Volumes Break Records
Prediction markets are experiencing unprecedented growth this month. Polymarket and Kalshi generated over $4.63 billion in combined trading volume through October 23.
The figure surpasses September’s previous record of $4.17 billion. Kalshi alone posted $2.87 billion in October volume, marking its highest monthly total.
Polymarket recorded over $2 billion in weekly trading volume during the week ending October 19. This represents the platform’s highest weekly volume to date.
Polymarket Valuation Climbs Toward $15 Billion
Polymarket is conducting early discussions with investors for a new funding round. Sources indicate the company is targeting a valuation between $12 billion and $15 billion.
The potential valuation marks a tenfold increase since June. Peter Thiel’s Founders Fund led a $200 million round valuing Polymarket at $1 billion during that time.
Intercontinental Exchange committed up to $2 billion to Polymarket earlier in October. The deal valued the platform at $8 billion pre-money.
The investment made CEO Shayne Coplan the youngest self-made billionaire. It also strengthened Polymarket’s connections with traditional financial institutions.
Competitor Kalshi is attracting similar investor attention. The platform is receiving offers valuing it above $10 billion, more than doubling its recent valuation.
Both platforms are expanding into regulated US markets. Kalshi operates under CFTC oversight while Polymarket plans a compliant US rollout through its QCEX acquisition.
Polymarket recently secured a partnership with the National Hockey League. The deal marks the first major US sports league collaboration in the prediction market space.
The platform expanded its blockchain support by adding Binance’s BNB Chain. Users can now deposit and withdraw funds using BNB Chain alongside existing Polygon and Chainlink integrations.
Railbird was founded in 2021 but only gained CFTC approval as a designated contract market in June this year.
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