DraftKings’ shift towards prediction markets fuels broader revenue streams

DraftKings Inc. (NASDAQ:DKNG) is ramping up its involvement in prediction markets, marking a notable shift from its core sports betting business as fantasy football season reaches a crucial point. By acquiring Railbird Technologies—a federally approved exchange—DraftKings is set to introduce a dedicated prediction app, allowing users to buy and sell contracts based on outcomes in areas like finance, pop culture, and entertainment. This initiative, which coincides with the NFL’s Week 8 fantasy matchups, highlights DraftKings’ strategy to broaden its revenue base and adapt to changing consumer interests in digital entertainment, as reported by

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The purchase of Railbird, completed after trading hours on October 21, 2025, gives

entry to a regulated event contract platform—a market that has gained momentum through services like Polymarket and Kalshi. CEO Jason Robins described this as a “logical progression” for the company, suggesting that prediction markets could open up fresh possibilities by utilizing DraftKings’ mobile reach and established brand, according to . Polymarket, a prominent name in the sector, will serve as a clearinghouse for DraftKings’ new products, forming a partnership that strengthens the infrastructure for betting on real-world events. Shayne Coplan, CEO of Polymarket, called the alliance a “significant milestone” in making prediction markets more accessible, especially as interest grows in political and cultural event forecasting, as reported by .

For those invested in fantasy football, timing is everything. As Week 8 games help determine playoff contenders, DraftKings’ expanded offerings could impact DFS (Daily Fantasy Sports) tactics. Experts point out that the company’s move into prediction markets may spark new approaches in DFS stacking—combining top-performing players with advantageous matchups—and identifying value picks for cash contests. While the original content did not specify Week 8 player recommendations, the overall trend of merging prediction tools with fantasy platforms points to a future driven by analytics and data-based choices.

The company’s shares have remained steady amid these strategic changes. Stifel has maintained its Buy rating and a $51 price target for

after the Railbird deal, despite recent market swings. Berenberg analysts also upgraded the stock to Buy, citing margin expansion and operational gains, according to Investing.com. Nevertheless, the company faces ongoing challenges, such as a recent security incident affecting user accounts and anticipated lower sports betting revenue in the next quarter.

DraftKings is also enhancing its content lineup beyond DFS. Its renewed partnership with Matthew Berry’s Fantasy Life, now extended to LG Channels, is designed to deliver year-round fantasy football analysis. The partnership introduces fresh programming, on-demand content, and coverage of the NFL playoffs and the 2026 draft, appealing to fans looking for a competitive advantage, as noted by

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As DraftKings tackles regulatory and operational challenges, its expansion into prediction markets reflects larger trends in the industry. The Trump administration’s supportive stance on gambling and investments like Polymarket’s $2 billion backing from Intercontinental Exchange create a promising climate for innovation. Still, achieving profitability remains a priority, with Jefferies analysts highlighting the potential for prediction markets to encourage regulatory acceptance in new states, as previously mentioned by Yahoo Finance.

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