DraftKings is acquiring predictions platform Railbird to launch DraftKings Predictions, a new mobile platform. Railbird is licensed by the CFTC and was targeted for its team and technology. CEO Jason Robins sees prediction markets as a growth opportunity beyond sports betting, allowing customers to trade on events in finance, culture, and entertainment.

However, some states are taking action to prevent companies like DraftKings from offering sports-related trades in prediction markets, citing concerns of unlicensed gambling. Nevada is warning that companies risk losing their gambling licenses if they offer sports contracts. DraftKings may focus on states without licensed sports betting to avoid legal issues.

To navigate potential regulatory challenges, DraftKings may implement advanced identity verification measures in its prediction markets. The company’s experience in the regulated gambling market could help in developing “know your customer” guardrails. Additionally, technology may be used to restrict sports trades from being available on tribal lands.

Read more at CNBC: DraftKings acquires predictions platform Railbird