DraftKings is moving further into federally supervised prediction markets after Railbird Exchange submitted its first group of event contract certifications to the Commodity Futures Trading Commission.
The filings appeared in the CFTC’s Designated Contract Market products database under the name “REX.” They include six binary option templates connected to sports results and player performances: GAMEWIN, GAMESPREAD, GAMEPROPERTY, ENTITYSTAT, ENTITYOUTPERFORM, and ENTITYACHIEVEMENT. Regulators classified the submissions under “Event” and “Binary Option” products after the certifications were filed May 22.
It appears to be the strongest signal so far that DraftKings plans to build a much larger sports-focused prediction market business through Railbird Exchange, the federally licensed exchange operator the company bought last year.
News of the filing first surfaced on X through PredictionMarketPulse, which called the submission Railbird’s “first product certifications with the CFTC.”
DraftKings and Railbird sports contracts move closer to mainstream trading
Several of the newly certified templates closely resemble standard sportsbook wagers, although they would operate inside a federally regulated derivatives structure instead of a state gaming framework.
GAMEWIN and GAMESPREAD appear comparable to moneyline and point-spread betting. ENTITYSTAT and ENTITYOUTPERFORM seem designed for player performance markets, while ENTITYACHIEVEMENT could support contracts tied to records, awards, or statistical milestones.
The products fall under the Commodity Exchange Act and CFTC oversight rather than traditional state sports betting rules, which has increasingly attracted attention as prediction markets carve out an alternative route into sports-related trading across the country.
DraftKings first outlined its plans when it acquired Railbird Exchange in 2025. The deal gave the company direct access to a federally regulated designated contract market license. Around that time, DraftKings announced plans for “DraftKings Predictions,” a separate platform centered on event contracts involving finance, entertainment, culture, and potentially sports.
Since then, the company has continued expanding the initiative. Earlier this year, DraftKings launched DraftKings Predictions across 38 states, including California, Texas, Florida, and Georgia, where conventional online sportsbooks remain unavailable. Rather than routing activity through state gaming agencies, the platform processes customer orders through federally regulated exchanges.
DraftKings also entered a partnership with Crypto.com’s derivatives exchange to increase the range of event contracts available on the platform.
The newest Railbird certifications suggest the company now wants to substantially increase its sports-related offerings as competition intensifies across the prediction market sector.
Companies including Kalshi, CME Group, and Crypto.com have all pushed deeper into sports event contracts during the past year. At the same time, regulators continue debating where prediction markets stop and sports wagering begins.
State gaming regulators have started applying additional pressure as federally regulated markets expand. Nevada authorities recently stepped up enforcement efforts tied to prediction market products, while Bank of America analysts warned regulatory uncertainty could become a growing concern for gaming operators entering the space.
Even so, DraftKings appears committed to the strategy. Although the newly certified templates do not create live markets immediately, self-certification remains a requirement before launching products under CFTC supervision.
Featured Image: Via DraftKings Inc LinkedIn post
