TLDR
- DraftKings acquired CFTC-regulated prediction market platform Railbird and will launch DraftKings Predictions mobile app in coming months with Polymarket handling trade clearing
- Polymarket is seeking new funding at a $12-15 billion valuation, more than tenfold increase from its $1 billion valuation in June 2025
- Prediction markets hit record trading volumes with over $4.63 billion across Polymarket and Kalshi in first 23 days of October, breaking previous monthly record
- Intercontinental Exchange invested $2 billion in Polymarket earlier this month at an $8 billion valuation, making CEO Shayne Coplan the youngest self-made billionaire
- Polymarket secured partnerships with DraftKings and National Hockey League while expanding blockchain support to include Binance’s BNB Chain
DraftKings announced its entry into the prediction markets sector through the acquisition of Railbird and a partnership with Polymarket. The sports betting platform purchased the CFTC-regulated prediction market platform for an undisclosed amount on Tuesday.
Polymarket will serve as the clearinghouse for DraftKings’ new platform. The clearinghouse verifies trades, holds collateral, and ensures contracts settle fairly while preventing defaults and reducing counterparty risk.
The new DraftKings Predictions mobile app will launch in the coming months. The platform will cover markets spanning finance, culture, and entertainment.
DraftKings stated the product will connect to multiple exchanges. This approach will allow the company to offer one of the broadest suites of markets to customers.
The move marks DraftKings’ first major crypto-related initiative since closing its NFT marketplace in July 2024. Polymarket CEO Shayne Coplan announced the partnership on X Wednesday.
Polymarket’s Growth Trajectory
Polymarket is currently in early discussions with investors to raise capital at a $12-15 billion valuation. Bloomberg reported the fundraising talks on October 23, citing sources familiar with the matter.
The potential valuation represents a more than tenfold increase from June. Peter Thiel’s Founders Fund led a $200 million funding round in June that valued the company at $1 billion.
Intercontinental Exchange agreed to invest up to $2 billion in Polymarket earlier this month. The NYSE parent company’s investment valued Polymarket at $8 billion pre-money.
The ICE deal made Polymarket CEO Shayne Coplan the youngest self-made billionaire. It also strengthened the platform’s connections with traditional financial institutions.
Polymarket acquired its clearinghouse capabilities through the $112 million purchase of US derivatives exchange QCEX in June. The acquisition enabled Polymarket’s reentry into the US market after more than two years away.
Record Trading Activity
Prediction markets are experiencing unprecedented growth in October. Polymarket and Kalshi combined for over $4.63 billion in trading volume during the first 23 days of the month.
This surpasses the previous monthly record of $4.17 billion set in September, according to DefiLlama data. Kalshi posted $2.87 billion in October trading volume, its highest monthly total to date.
Polymarket’s weekly trading volumes exceeded $2 billion during the week ending October 19. The figure represents the highest weekly volume in the platform’s history.
Railbird received regulatory approval from the CFTC as a designated contract market in June. The company was founded in 2021.
Polymarket has secured multiple partnerships this month beyond DraftKings. The platform integrated with Sam Altman’s World App on Tuesday.
MetaMask plans to complete its Polymarket integration before year-end. The platform also announced a partnership with the National Hockey League, marking the first major US sports league collaboration in the prediction markets sector.
Polymarket expanded its blockchain infrastructure by adding Binance’s BNB Chain. The platform now supports deposits and withdrawals on BNB Chain alongside existing integrations with Polygon and Chainlink.
Rival platform Kalshi is fielding offers valuing it above $10 billion. This represents more than double its recent funding round valuation.
