NBA Embraces the CFTC on Prediction Markets as the NFL Fights It in Court

The NBA has agreed to information-sharing with the CFTC to safeguard prediction markets, mirroring similar accords with MLB and NHL.

This cooperation occurs as sports betting transitions toward venues regulated by the CFTC.

The Commodity Futures Trading Commission stated on Monday that it signed a memorandum of understanding with the basketball league. This pact aims to protect the integrity of professional basketball in prediction markets.

Under the agreement, both parties will communicate regularly and share information regarding integrity matters to maintain fair and transparent markets. CFTC Chairman Michael Selig remarked that "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."

This partnership reflects the migration of sports-outcome betting to CFTC-regulated platforms such as Kalshi and Polymarket, which allow trading of "event contracts" based on real-world results.

These league-regulator MOUs are designed to create a mechanism for flagging suspicious activity, following the NHL's licensing of trademarks to a prediction market and MLB's agreement linked to a Polymarket transaction.

The NBA's involvement is notable because the league recently faced a significant betting scandal, including an October 2025 FBI operation resulting in the arrest of Miami Heat guard Terry Rozier and a coach over alleged gambling schemes.

This collaboration arrives amidst a jurisdictional dispute, as the CFTC has sought to define event contracts as "swaps" under its authority, while the NFL is engaged in a Supreme Court battle with Kalshi and has not signed on.

Bernstein analysts forecast that prediction markets might generate billions in revenue by the close of the decade, with new participants like Blockchain.com seeking CFTC approval for event contracts.