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DraftKings is expanding the systems it uses to detect suspicious betting activity, prevent prohibited wagering and address customers who threaten athletes or officials.
Most of the additional monitoring will take place behind the scenes for Michigan customers using DraftKings Sportsbook Michigan. The changes affect how the operator reviews accounts and enforces restrictions rather than how bettors place wagers through the app.
DraftKings announced the expanded agreement with Integrity Compliance 360 (IC360) on Sept. 8. The company will use four IC360 products across DraftKings Sportsbook, DKeX and DraftKings Predictions.
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Real-time monitoring flags suspicious activity
IC360 will provide real-time integrity monitoring across DraftKings’ sports-related platforms.
The system reviews betting and trading patterns and sends alerts when it detects activity that differs from what would normally be expected in a market. DraftKings’ compliance team can then examine the activity and determine whether further action is necessary.
Michigan’s sports betting rules already require operators to maintain controls for identifying unusual wagering activity and reporting it to an independent integrity monitoring provider.
The rules define suspicious activity as unexplained wagering that could indicate match-fixing, event manipulation, misuse of inside information or another prohibited action.
ProhiBet helps keep prohibited bettors out
DraftKings will also deploy IC360’s ProhiBet system across its regulated sportsbook.
ProhiBet maintains an encrypted and continually updated database of people who are restricted from wagering on particular sports. The list can include athletes, coaches, trainers, officials, and team or league employees with influence over an event or access to information unavailable to the public.
DraftKings can screen customer accounts against the database to help prevent identified individuals from placing prohibited wagers.
Michigan requires sportsbook operators to make reasonable efforts to prevent prohibited people from establishing accounts or participating in sports wagering. When an operator verifies that a prohibited person has used an account to wager, the account must be suspended or closed.
ProhiTrade applies restrictions to event contracts
A separate IC360 product will cover DraftKings’ prediction market operations.
ProhiTrade is designed to prevent people with material nonpublic information from trading contracts tied to events or outcomes they can influence. DraftKings will use the technology across DKeX and DraftKings Predictions.
The concept is similar to ProhiBet, but it applies to event contracts rather than conventional sportsbook wagers. Prediction markets allow customers to buy and sell contracts based on whether a particular event will happen.
The expansion comes as Michigan officials continue challenging prediction markets that offer sports contracts. The state maintains that companies offering sports-related event contracts must comply with its sports betting laws.
Using ProhiBet and ProhiTrade gives DraftKings similar controls for prohibited participants across its sportsbook and prediction-market platforms.
DraftKings can ban customers who threaten athletes
The fourth part of the agreement brings DraftKings into ProhiBet Bad Actors, IC360’s anti-harassment program.
The system identifies customers who threaten, harass or abuse athletes, coaches, officials, and other sports figures. That includes conduct connected to a lost wager or another unfavorable result.
Once a customer is flagged, DraftKings can suspend the account or close it permanently. Evidence may also be shared with sports leagues, teams or law enforcement when appropriate.
Fanatics Sportsbook previously joined the Bad Actor Program, a move welcomed by the Michigan Gaming Control Board.
The broader Bad Actor Program has used Signify Group’s Threat Matrix service to monitor public social media activity. Athletes and officials can also submit abusive direct messages for review.
Reports are assessed based on their severity, while serious cases can be escalated for further investigation. Individuals linked to problematic abuse or threats can then be added to the ProhiBet Bad Actors system.
For most Michigan bettors, the agreement will not create a visible change within the DraftKings app. Its main effect will be stronger monitoring intended to detect suspicious activity, enforce existing restrictions, and impose consequences when betting losses lead to threats or harassment.
