NBA Signs CFTC Pact, Names Kalshi and Polymarket Preferred Exchanges

The National Basketball Association announced new integrity framework deals for Polymarket, Kalshi, and DraftKings on Monday. The league secured an information-sharing agreement with the Commodity Futures Trading Commission regarding its involvement in prediction markets. This arrangement is similar to memoranda of understanding previously established by Major League Baseball and the National Hockey League. The NBA also expanded its existing agreement with DraftKings to cover prediction markets.

Under the new arrangements, prediction markets will be able to use official league data and intellectual property. The agreements give Kalshi and Polymarket access to official NBA data supplied by Sportradar for settling authorized markets. The NBA and the CFTC agreed to put in place standards to protect the integrity of the game. These constraints are meant to maintain the integrity of wagering and address insider trading and fraud. The partnerships include integrity safeguards prohibiting NBA and team personnel from trading NBA event contracts. The agreements also promise limitations on permissible markets and information-sharing on suspicious trades.

Scott Kaufman-Ross, the NBA's head of media distribution and partnerships, stated that the partnerships represent an important step in establishing a framework for new opportunities to engage fans. CFTC Chairman Michael S. Selig said the agreement with the NBA would strengthen information sharing to address insider trading and fraud in prediction markets. The NBA's response to gambling scandals involves adding more gambling partnerships including prediction market deals.

The National Football League has rejected arrangements with prediction market firms and sided with states arguing their gambling laws should govern such betting. The NFL backed a Supreme Court petition arguing that certain sports event contracts threaten game integrity because they are susceptible to manipulation. The US Supreme Court has been asked to review the New Jersey dispute regarding federal commodities rules versus state gambling laws, with 39 states and Washington, DC supporting the petition. On Oct. 20, Utah Attorney General Derek Brown sued Kalshi, alleging that the platform had facilitated illegal betting in the state since 2024. Utah officials are seeking to recover an estimated $30 million to $60 million in profits allegedly earned by Kalshi and other defendants.