NBA prediction markets MOU is now signed with the CFTC. The agreement aims to prevent insider trading. It covers league-related prediction markets.
Additionally, the NBA named Kalshi and Polymarket as designated exchanges. Therefore, the league now has preferred prediction market partners.
NBA prediction markets MOU focuses on information sharing
The NBA announced the MOU in a league release. Specifically, it said the deal reflects shared commitment to oversight. The CFTC confirmed the agreement in its own release. It said the goal is protecting basketball integrity.
CFTC Chair Michael Selig commented on the step. “The NBA joins the MLB and NHL,” Selig said. He said they took a responsible step for market participants. Moreover, he cited protections from insider trading and fraud.
However, state regulators continue to scrutinize prediction markets. For example, Utah sued Kalshi last week. The state alleged illegal online gambling. It also sought to block Kalshi in Utah.
State regulators argue these platforms resemble sports betting. They point to sports-event contracts offered by the platforms. Conversely, the CFTC defends its jurisdiction over them. The agency argues these contracts are swaps, not bets.
Additionally, the NBA partnership includes an integrity framework. The framework limits permissible markets. It also prohibits trading by league and team personnel. Furthermore, it requires information sharing for investigations. It covers suspicious trading as well.
Kalshi and Polymarket will receive NBA IP rights. They also get marketing rights and promotional materials. Moreover, they receive league data to operate authorized markets. They will use that data to settle authorized league-related markets.