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DraftKings is expanding the systems it uses to detect suspicious activity, enforce betting restrictions, and address harassment involving athletes and officials.
Under the expanded agreement, New Jersey customers who threaten or harass athletes, coaches or officials could have their DraftKings accounts suspended or permanently closed. The company will also receive additional tools to identify unusual betting and trading patterns and prevent people with inside information from participating in markets they could influence.
Most of the changes will operate behind the scenes for customers using DraftKings Sportsbook NJ, affecting how the operator monitors accounts and enforces restrictions rather than how wagers are placed through the app.
DraftKings announced the expanded agreement with Integrity Compliance 360 (IC360) on Sept. 8. The operator will use four IC360 products across DraftKings Sportsbook, DKeX and DraftKings Predictions.
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Bad Actors program targets bettor harassment
DraftKings is joining ProhiBet Bad Actors, an IC360 program designed to identify customers who threaten, harass, or abuse people involved in sports.
The program covers conduct directed at athletes, coaches, officials, and other sports figures, including harassment connected to a lost bet or another unfavorable result. Once a customer is flagged, DraftKings can suspend the account or close it permanently.
Evidence may also be shared with a sports league, team, or law enforcement when appropriate.
Fanatics Sportsbook joined ProhiBet Bad Actors earlier this year, making DraftKings the latest sportsbook operating in New Jersey to participate.
The broader program works with Signify Group’s Threat Matrix service to monitor public activity on social media. Athletes and officials can also report 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 threats or abuse can then be added to the ProhiBet Bad Actors system.
Unusual betting and trading can trigger review
A separate part of the IC360 agreement focuses on activity within DraftKings’ markets.
The company will receive real-time alerts when the monitoring system detects betting or trading patterns that differ from what would normally be expected. DraftKings’ compliance team can review the activity and determine whether it requires further action.
The system will monitor both traditional wagers and prediction market trades, allowing the company to identify suspicious patterns across its sports-related platforms.
Separate systems cover sportsbook wagers and event contracts
The other two IC360 products are intended to prevent prohibited people from participating in markets they can influence.
DraftKings Sportsbook will use ProhiBet, an encrypted database containing people who are restricted from wagering on particular sports. The list is continually updated and 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 that database and block identified people from placing prohibited wagers.
New Jersey already prevents certain people connected to sports from betting on related events. Athletes, coaches, officials, and people with enough authority to influence participants are among those who may face restrictions.
ProhiTrade applies a similar approach to DraftKings’ prediction market operations. The technology will be used across DKeX and DraftKings Predictions to prevent people with inside information from trading event contracts tied to outcomes they can influence.
Prediction markets allow customers to buy and sell contracts based on whether an event will happen, rather than placing a conventional sportsbook wager.
The expansion comes as New Jersey lawmakers consider legislation that would require prediction market operators to introduce safeguards targeting fraud, insider trading, and market manipulation.
By using ProhiBet and ProhiTrade, DraftKings will have similar controls for prohibited participants across both types of platforms. Combined with real-time monitoring and the Bad Actors program, the agreement gives the company additional ways to detect suspicious activity and respond when customers cross the line into threats or harassment.
