DraftKings Buys CFTC-Regulated Exchange in Prediction-Market Bet

DraftKings Inc. has acquired a federally regulated trading venue, marking its most aggressive move yet into the contested world of prediction markets.

The company said Tuesday that it purchased Railbird Technologies Inc., an exchange licensed by the Commodity Futures Trading Commission, as it seeks to expand beyond sports betting and capitalize on demand for real-money wagering on future events. The terms of the deal were not disclosed.

The acquisition puts DraftKings in line to be one of the first sports betting companies to offer federally sanctioned event contracts. But it comes as rivals from the financial industry — including CME ...