DraftKings announced Tuesday the acquisition of Railbird Technologies Inc. and its federally licensed exchange subsidiary, expanding its business into prediction markets.

The acquisition enables DraftKings to offer regulated event contracts on outcomes across finance, culture, and entertainment through a new mobile application called DraftKings Predictions, expected to launch in the coming months.

“We are excited about the additional opportunity that prediction markets could represent for our business,” said Jason Robins, CEO and Co-Founder of DraftKings.

The company stated the new platform will connect to multiple exchanges, allowing it to offer a broad suite of markets to customers, with potential expansion into additional categories over time.

Miles Saffran, CEO and Co-Founder of Railbird, called the acquisition “a transformational moment” for his company.

DraftKings’ new prediction markets venture represents an expansion beyond its current offerings in daily fantasy sports, available in 44 states and parts of Canada, and sports betting operations in 28 states, Washington D.C., and Ontario.

The Boston-based company, founded in 2012, also operates iGaming in five states and Ontario under its DraftKings brand and in four states and Ontario under its Golden Nugget Online Gaming brand.