NBA reaches deal with prediction markets Kalshi and Polymarket
Published in Business News
The National Basketball Association reached a deal with Kalshi and Polymarket that designates the platforms as the league’s preferred prediction market exchanges, in addition to announcing an information sharing agreement with the U.S. Commodity Futures Trading Commission.
The NBA said Monday that it would license official data to the top prediction market platforms. The agreement puts in place limitations on permissible markets, information-sharing obligations for rooting out suspicious trading and prohibitions on trading by NBA league and team personnel.
“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,” Scott Kaufman-Ross, the NBA’s head of media distribution and partnerships, said in a news release.
The league also said it has broadened its agreement with betting app DraftKings Inc. to include prediction markets and nationwide promotion. It plans to “expand its relationship” with other current official sports betting partners in the coming weeks.
Prediction markets have surged in popularity over the past two years and allow customers to place wagers on just about anything, with trading largely fueled by sports-related contracts. That explosion has rocked the sports betting industry as the Trump administration embraces the platforms.
In a separate release, the CFTC said a memorandum of understanding with the NBA is meant to bolster market integrity for basketball-linked prediction trading on regulated exchanges. The deal comes on the heels of similar arrangements with Major League Baseball and the National Hockey League.
“The NBA joins the MLB and NHL in taking a responsible step toward protecting sports integrity and market participants from abuses in prediction markets like insider trading and fraud,” CFTC Chairman Michael Selig said in a release.
State officials have challenged the CFTC’s authority to regulate sports-related contracts traded on prediction markets, with the agency arguing it has “exclusive jurisdiction” over the industry. That legal fight is likely headed to the U.S. Supreme Court after federal appeals courts split over the issue.
Earlier this month, the National Football League asked the high court to allow states to regulate wagers tied to sports, putting it at odds with the Trump administration.
Kalshi said at the time that “the CFTC’s ongoing rulemaking addresses many of the NFL’s supposed concerns.” Polymarket separately said it shares the NFL’s commitment to “preserving the integrity of the game.”
(With assistance from Randall Williams.)
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