The US Commodity Futures Trading Commission (CFTC) and the National Basketball Association (NBA) have agreed to share information on prediction markets. The deal aims to protect basketball’s integrity amid concerns about insider trading and oversight.
The CFTC announced the agreement on Monday. CFTC Chairman Michael Selig and NBA Commissioner Adam Silver signed the memorandum of understanding.
The agreement will allow both parties to share information that could affect the integrity of professional basketball.
NBA names preferred prediction market platforms
The NBA has named Kalshi and Polymarket as its preferred prediction market exchanges. The league said the deals would “put in place significant integrity protections” by limiting the markets available.
“Protecting the integrity of the game is our top priority,” Scott Kaufman-Ross, NBA head of media distribution & partnerships, said in a statement.
“As this category develops, we believe it is important to work constructively with regulators and operators to help ensure that appropriate safeguards are in place. These partnerships represent an important step in establishing a framework that creates new opportunities to engage our fans.”
The agreement comes amid growing concerns about sports-related trading. Officials are also concerned about the misuse of confidential information.
Recent sports betting scandals have led to lifetime bans from the NBA and other legal action. Last year, more than 30 people were arrested in a federal probe into illegal gambling.
Kalshi and Polymarket have maintained that they operate trading platforms rather than betting services.
CFTC faces legal challenges over oversight
The NBA is the third major North American sports league to sign a prediction market deal. The National Hockey League and Major League Baseball signed similar agreements earlier.
The National Football League has also backed a request for the US Supreme Court to review a dispute over state oversight of sports-related prediction contracts.
NBA players cannot promote betting markets linked to their league. However, they can promote general brands and markets related to other sports. Several players, including four-time MVP LeBron James, have deals with prediction platforms.
Kalshi partnered with the US Open tennis tournament earlier this year. The men’s Association of Tennis Professionals tour also signed a deal with Polymarket.
The CFTC says prediction markets fall under its oversight because they involve trading in financial instruments. Several states have sued to block the regulator’s efforts.
Leave a Reply