DraftKings President of Operations Paul Liberman has said faster, more dynamic micro markets are likely to move into sports prediction markets, pointing to another possible overlap between sportsbooks and federally regulated event contracts.
Liberman made the comments during a Milken Institute Global Conference panel on prediction markets and data-driven decision tools. His remarks come as DraftKings expands DraftKings Predictions while lawmakers, courts and regulators test whether sports-event contracts sit closer to derivatives or sports betting.
DraftKings has already built toward in-play betting
DraftKings has spent heavily on the infrastructure behind faster sports markets. The company agreed to acquire Simplebet in August 2024, describing the business as a provider of in-play micromarket content and pricing.
The deal was completed in December 2024, bringing automated in-game pricing tools deeper into DraftKings’ own product stack. That gives the company more control over markets tied to quick live outcomes, a format now drawing more attention from regulators and public health groups.
DraftKings Predictions launched on December 19, 2025, as a standalone app and web product under CFTC oversight. In company filings, DraftKings said the platform allows eligible customers to trade contracts tied to real-world outcomes, including sports and financial markets.
Railbird clearing shift adds market capacity
The prediction market infrastructure around DraftKings also changed this week. On May 4, the CFTC issued a supplemental no-action letter tied to Railbird Exchange and Bitnomial Clearinghouse.
The letter allows Bitnomial to clear Railbird contracts after a transition period. It also removes a prior condition that limited third-party clearing by Railbird participants, giving the exchange more flexibility as event-contract activity expands.
Microbetting faces legal and political pressure
Microbetting is also under legal attack. In March, the Public Health Advocacy Institute filed a lawsuit against DraftKings, FanDuel, Genius Sports and the NFL, alleging that rapid in-game betting products were designed in ways that contributed to addiction.
Lawmakers are also taking interest. New Jersey’s S2160 would ban micro bets, defined as live proposition bets tied to the next play or action in a sporting event. The bill has been framed around both consumer risk and sports integrity.
DraftKings’ strategy now sits between two pressures. The company sees faster markets as a way to deepen engagement and reach states where sportsbooks cannot operate, but the closer prediction markets move toward sportsbook-style products, the harder that line may be for regulators to ignore.
