DraftKings Expands IC360 Integrity Tools Across Sportsbook And Prediction Markets
The expanded agreement will bring integrity monitoring for sportsbook wagering and event-contract trading into a single operating environment.
DraftKings has expanded its partnership with IC360 to deploy a suite of integrity tools across both DraftKings Sportsbook and its growing prediction markets business.
Under the agreement announced on 8 September, DraftKings will use Integrity Monitoring, ProhiBet, ProhiTrade and ProhiBet Bad Actors across its operations. IC360 said the deal represents its first single-operator integration combining ProhiBet, which focuses on prohibited sportsbook wagering, with prediction market-focused ProhiTrade.
The expansion comes as DraftKings continues to develop DraftKings Predictions alongside its established sportsbook business. The company launched its proprietary DKeX exchange in June and said DraftKings Predictions had reached approximately $3.4 billion in annualised consumer volume for the week ending 21 June.
IC360 Tools Target Different Integrity Risks
ProhiBet will be used within DraftKings Sportsbook to identify people prohibited from wagering on competitions they could potentially influence. This can include athletes, coaches, trainers, officials and other league personnel subject to betting restrictions.
ProhiTrade applies a similar integrity model to prediction markets but is designed around the risks associated with event-contract trading. The technology aims to prevent individuals with material non-public or insider information from trading contracts connected to outcomes they may be able to influence.
DraftKings intends to deploy ProhiTrade across both DKeX and DraftKings Predictions, while IC360's wider integrity monitoring technology will identify potentially suspicious betting and trading patterns in real time.
ProhiBet Bad Actors provides an additional layer of monitoring by identifying customers associated with harassment or threats directed towards athletes, coaches and officials.
“As consumer market offerings continue to expand, operators and exchanges need systems that work fluently across all verticals,” IC360 Chief Commercial Officer Ali Schempp said.
DraftKings Combines Controls Across Two Regulatory Models
The integration is notable because DraftKings' sportsbook and prediction market businesses operate within different regulatory frameworks in the US.
DraftKings Sportsbook is regulated through state-level gambling regimes, while the company's event-contract exchange operates within the federal commodities framework overseen by the Commodity Futures Trading Commission (CFTC).
DraftKings acquired Railbird Exchange before rebranding and operating the platform as DKeX. Railbird Exchange remains listed as a designated contract market with the CFTC, with regulatory filings identifying the entity as Railbird Exchange LLC, doing business as DKeX.
The expanded IC360 relationship will therefore bring integrity controls covering two differently regulated products into a common technology environment while retaining tools designed for the specific risks associated with each vertical.
Prediction Market Expansion Continues
Prediction markets have become an increasingly important part of DraftKings' US strategy, allowing the company to offer event contracts alongside its traditional regulated sports betting operations.
The IC360 agreement indicates that existing sports betting integrity infrastructure is also being adapted to address the different compliance challenges presented by prediction markets, particularly around insider information and prohibited trading.
No timetable has been disclosed for completing the integration. However, the planned rollout of ProhiTrade across DKeX and DraftKings Predictions will further connect the integrity systems supporting DraftKings' sportsbook and prediction market businesses.
