TLDR
- DraftKings acquired Railbird, a CFTC-regulated prediction market platform, and will use Polymarket as its clearinghouse for a new prediction market app launching in coming months
- Polymarket is seeking new funding at a $12-15 billion valuation, up from $1 billion in June and $8 billion earlier this month when ICE invested $2 billion
- Prediction markets hit record trading volumes in October with Polymarket and Kalshi combining for over $4.63 billion in the first 23 days, beating September’s $4.17 billion record
- Polymarket recently announced partnerships with DraftKings and the NHL, marking the first major US sports league deals in the prediction market sector
- Kalshi is also fielding investor offers valuing it above $10 billion, more than double its recent funding round valuation
DraftKings acquired Railbird this week for an undisclosed amount. Railbird is a CFTC-regulated prediction market platform that received regulatory approval in June.
The sports betting company will launch a new mobile app called DraftKings Predictions in the coming months. The platform will cover markets ranging from finance to entertainment and culture.
Polymarket will serve as the clearinghouse for the new platform. CEO Shayne Coplan confirmed the partnership on X Wednesday.
Congrats to @DraftKings on their acquisition of @RailbirdHQ.
We’re proud for Polymarket Clearing to be their designated clearinghouse as they enter the prediction market space.
— Shayne Coplan 🦅 (@shayne_coplan) October 22, 2025
A clearinghouse verifies trades, holds collateral and ensures contracts are settled fairly. This reduces counterparty risk and maintains trust between participants.
DraftKings says the product will connect to multiple exchanges. This will allow the company to offer a broad range of markets to customers.
The move marks DraftKings’ first major crypto initiative since closing its NFT marketplace in July 2024. Polymarket acquired its clearinghouse capabilities through the $112 million purchase of QCEX in June.
Record Trading Volumes Drive Growth
Prediction markets are experiencing rapid growth in October. Polymarket and Kalshi combined for over $4.63 billion in trading volume through October 23.
This surpasses September’s record of $4.17 billion. Kalshi alone reached $2.87 billion this month, its highest monthly total ever.
Polymarket’s weekly trading volume exceeded $2 billion during the week ending October 19. This represents the platform’s highest weekly volume in its history.
Polymarket Seeks New Funding Round
Polymarket is in early talks with investors for a new funding round. Sources familiar with the matter say the company is targeting a valuation between $12 billion and $15 billion.
This would represent more than a tenfold increase from June. Peter Thiel’s Founders Fund led a $200 million round that valued Polymarket at $1 billion.
Earlier in October, Intercontinental Exchange agreed to invest up to $2 billion. That deal valued Polymarket at $8 billion pre-money and made CEO Shayne Coplan the youngest self-made billionaire.
Rival platform Kalshi is also attracting investor interest. The company is fielding offers valuing it above $10 billion, more than double its recent funding round.
Polymarket recently added partnerships with the National Hockey League. The NHL deal marks the first major US sports league collaboration in the prediction market sector.
The platform now supports deposits and withdrawals on Binance’s BNB Chain. This adds to existing integrations with Polygon and Chainlink.
