Prediction markets have had a massive influence on the gambling world so far in 2025, with sports event contracts from operators Kalshi, Robinhood, and Crypto.com. Prediction market influence could grow even more thanks to several recent developments across the industry.
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DraftKings Could Buy Railbird
According to a report by FrontOfficeSports, DraftKings is in talks to acquire Railbird Exchange. Railbird just received its license to offer designated contract markets (DCM) by the Commodity Futures Trading Commission (CFTC).
DraftKings has been seeking to enter the prediction market space for some time now. Back in April, it was reported that the sportsbook had withdrawn its application for a DCM license.
DraftKings has not confirmed the specific talks, simply saying it "speaks to a variety of companies regarding various matters."
Railbird Exchange is so new that there are no markets available on its website, stating "markets launch soon". The company received its license less than a month ago on June 18, 2025.
Entering the prediction markets sector has obvious appeal to DraftKings. Kalshi has seen a 100x growth in volume, according to the company.
PredictIt And CFTC Come To an Agreement
PredictIt will expand its operation after an agreement with the CFTC. Predictit, one of the oldest prediction market operators, will now be able to remove a 5,000-person cap on its markets, allowing an unlimited number of traders per market.
The agreement also increases the maximum wager allowed on the site from $850 to $3,500. The firm's General Council, David Mason, hailed the agreement and chances as a big win:
 | "This new cap strikes the right balance — it allows meaningful participation and more informative markets, while preventing billionaires from distorting the odds or overwhelming the collective voice of everyday Americans" -David Mason, PredictIt General Council |
The agreement is a clear sign that the CFTC is ready to work with, rather than against, prediction market operators. An outcome that was evident when Brian Quintenz was put forward to become the federal regulator's new chair.
Two Probes Into Polymarket Canceled
Polymarket is yet another prediction market that has received some positive legal news. The firm was told that the Department of Justice (DOJ) and the CFTC had canceled probes into the company.
Polymarket caught the ire of federal regulators by offering political event contracts on its platform in the run-up to the election. That escalated to the point where CEO Shayne Coplan had his property raided and electronics seized by the FBI.
8 months ago, on election night, we were on top of the world after Polymarket called the election.
— Shayne Coplan 🦅 (@shayne_coplan) July 15, 2025
8 days later, the FBI broke down my door at 6am and took all my computers and phones, looking for anything that could imply foul play.
While traumatic, it etched the story of… pic.twitter.com/EOfJQTCzMY
Again, these recent actions by the DOJ and the CFTC make it clear that federal regulators intend to allow prediction markets to exist legally despite several court cases arguing the opposite.
In New Jersey, Nevada, and Maryland, Kalshi is fighting to continue operating after being served with cease-and-desist letters in those jurisdictions. Kalshi's New Jersey case is escalating in scale as their opponents receive support from numerous tribes and tribal groups, at least 34 attorneys general, anti-gaming groups, and the Casino Association of New Jersey.
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Polymarket And Grok Team Up
Prediction markets and AI have come together on X with Polymarket and Grok teaming up. A new account, @AskPolymarket, provides predictions and odds for any question asked by X users.
Users tag the AskPolymarket account to get an answer back from the bot.
Hey @AskPolymarket – who are the top 3 candidates for Time person of the year?
— Polymarket (@Polymarket) July 15, 2025
The X-Polymarket partnership was announced back in June. The news of that partnership had come as a bit of a surprise, as Elon Musk had previously announced his social media platform would be partnering with prediction market firm Kalshi.
Polymarket hopes the partnership and exposure will allow it to bridge the gap between itself and Kalshi in the prediction market sphere.
