NBA signs prediction market regulatory agreement with CFTC, Kalshi and Polymarket become preferred partner platforms.

October 27 - The U.S. Commodity Futures Trading Commission (CFTC) and the National Basketball Association (NBA) signed a memorandum of understanding, under which the two parties will share information and establish a communication mechanism to safeguard the fairness of prediction market trading and prevent insider trading and market manipulation. The NBA also announced that Kalshi and Polymarket will become its preferred prediction market platforms.

The NBA becomes the third U.S. professional sports league to sign a similar agreement with the CFTC. Previously, the National Hockey League (NHL) and Major League Baseball (MLB) had already reached cooperation with the CFTC.

Regulatory authority over prediction markets remains disputed. The CFTC holds that most prediction market contracts are swaps and fall under its exclusive jurisdiction; multiple states argue that the relevant platforms are suspected of violating state gambling laws. New Jersey has asked the U.S. Supreme Court to hear the related dispute, and the NFL has also filed an amicus brief arguing that sports prediction contracts constitute gambling and should be regulated by the states.

In addition, the issue of insider trading in prediction markets continues to draw attention. Both Kalshi and Polymarket have stated that they have taken measures to strengthen verification of the identity and employment information of traders in sensitive markets, in order to reduce the risk of trading on non-public information.