TLDR
- The NBA signed a data-sharing agreement with the CFTC, the third major U.S. league to do so.
- Kalshi and Polymarket are now the NBAās āpreferred prediction market exchanges.ā
- Kalshi says the deal bars league and team personnel from trading NBA event contracts.
- The NFL has not signed and told the Supreme Court sports contracts are gambling.
- Federal courts have split on whether states or the CFTC should regulate prediction markets.
The National Basketball Association has signed a data-sharing agreement with the Commodity Futures Trading Commission. The deal was announced Monday and covers prediction markets.
The NBA is the third major U.S. sports league to sign such an agreement. Major League Baseball and the National Hockey League signed similar deals earlier this year.
The CFTC oversees federal rules for exchanges that list event contracts. These are simple yes-or-no trades that make up most sports betting on the platforms.
NBA names Kalshi and Polymarket as partners
The league also named Kalshi and Polymarket as its āpreferred prediction market exchanges.ā The NBA said the partnerships create new ways to engage fans.
āAs this category develops, we believe it is important to work constructively with regulators and operators to help ensure that appropriate safeguards are in place,ā said Scott Kaufman-Ross, the NBAās head of media distribution and partnerships. He called the partnerships āan important stepā toward a framework for fans.
Kalshi said it will share integrity data with the NBA and report suspicious trading. It will also cooperate on investigations.
The exchange said the deal limits which markets can be offered. It also bars league and team personnel from trading NBA event contracts.
CFTC Chairman Mike Selig called the agreement a responsible step. He said it helps protect sports integrity from abuses such as insider trading and fraud.
NFL takes a different path
The National Football League has not signed an agreement with the CFTC. It has pressed the agency for tougher rules on game integrity, consumer safety and insider trading controls.
The NFL argued that CFTC oversight has been lax and understaffed. It said the platforms do not face the same rules as state gaming authorities.
Earlier this month, the NFL filed an amicus brief with the U.S. Supreme Court. It said sports contracts are gambling and should be overseen by states.
Federal courts have split on the issue. Three major decisions have landed on both sides, and two favored the states.
New Jersey has asked the Supreme Court to take up the dispute. The CFTC says most prediction market contracts are swaps under its exclusive jurisdiction, while states say the firms break gaming laws and avoid taxes.
Insider trading has been a repeated problem on these platforms. An active-duty U.S. Army soldier was charged in April for using confidential information to bet on Polymarket before the capture of former Venezuelan President NicolƔs Maduro.
A former White House teleprompter agreed to pay more than $172,000 to settle charges. He was accused of using early access to President Trumpās speeches to profit on Kalshi.
Kalshi and Polymarket say they have added steps to deter insider trading, including mandatory employment verification for traders in sensitive markets. The NBAās agreement with the CFTC was announced Monday, October 26.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
