TLDR
- DraftKings executive Paul Liberman said fast-paced micro betting markets will soon enter sports prediction markets, speaking at the Milken Institute Global Conference.
- DraftKings acquired Simplebet in 2024 for nearly $200 million and now offers prediction contracts across 48 states.
- The CFTC issued a supplemental no-action letter allowing Bitnomial to take over clearing for Railbird Exchange, replacing QC Clearing.
- A product liability lawsuit filed in March 2026 claims microbetting caused severe gambling addiction, with one plaintiff losing over $1.8 million.
- A New Jersey Senate committee advanced a bill to ban micro bets, citing addiction and sports integrity concerns.
DraftKings is pushing deeper into micro betting and prediction markets, even as legal and regulatory challenges grow around the fast-paced wagering format.
Paul Liberman, DraftKings President of Operations, said at the Milken Institute Global Conference on Monday that sports prediction markets will soon feature faster and more dynamic micro markets that do not yet exist.
Liberman made the comments during a panel moderated by Dan Primack. He said the company sees room for continued innovation in the space.
DraftKings has been investing heavily in this area. In 2024, the company acquired Simplebet for nearly $200 million, a deal that showed its commitment to in-play betting as a driver of future growth.
DraftKings Expands Prediction Market Reach
The company launched DraftKings Prediction in December and now offers seven contracts across 48 states. That includes sports contracts in 18 states where its sportsbook cannot currently operate.
Liberman said traditional sports betting remains the company’s core product. Internal surveys showed that customers in regulated sportsbook markets still prefer placing bets through sportsbooks.
However, he pointed to the strategic value of prediction markets in states like California and Texas, where legal online sports betting is not available.
Liberman also noted that data from prediction markets is helping DraftKings improve its sportsbook operations. He said the data flows between both sides of the business.
Earlier this year, DraftKings introduced a “Super App” that combines sports betting and prediction markets into a single platform.
Meanwhile, infrastructure supporting DraftKings’ prediction market operations continued to shift. The Commodity Futures Trading Commission issued a supplemental no-action letter on May 4 after reviewing a joint request from Railbird Exchange and Bitnomial Clearinghouse.
The update allows Bitnomial to take over clearing responsibilities for Railbird’s contracts. It replaces QC Clearing, which previously handled those duties.
The CFTC also removed a restriction that had limited futures commission merchants from managing customer accounts on Railbird.
Lawsuits and Legislation Target Microbetting
Despite the growth push, legal pressure is building. In March 2026, the Public Health Advocacy Institute filed a product liability lawsuit against DraftKings, FanDuel, the NFL, and Genius Sports.
The plaintiffs claim microbetting products directly contributed to severe gambling addiction. One plaintiff reportedly lost $175,000. Another lost more than $1.8 million.
The lawsuit argues that microbetting mimics slot machine mechanics through rapid cycles and constant feedback. It claims operators used AI and machine learning to design systems that amplify addictive behavior.
The suit also connects the NFL to the microbetting ecosystem through its relationship with Genius Sports, its real-time data provider. Reports indicate Genius Sports generated over $126 million in microbetting-related commissions in 2025.
Lawmakers are responding as well. A New Jersey Senate committee advanced a bill to ban micro bets, defining them as wagers on the next play or action. New Jersey is one of the first states to directly challenge the format.
At the Milken conference, Robinhood Chief Investment Officer Stephanie Guild said the legal status of sports event contracts remains vulnerable without a clear federal ruling or Supreme Court decision.
Liberman acknowledged the blurry line between sportsbooks and prediction markets. He said customers do not distinguish between placing a bet on a sportsbook and making a trade on a prediction market.
DraftKings operates in both spaces, giving it flexibility in states where online sports betting is not legal. The New Jersey micro betting ban bill advanced through committee in April 2026.
