NBA taps Kalshi and Polymarket as the CFTC calls the shot on insider trading

The National Basketball Association (NBA) signed a memorandum of understanding (MOU) with the US Commodity Futures Trading Commission (CFTC) on Monday to strengthen information sharing and protect integrity in league-related prediction markets. Under the agreement, the parties will share information, communicate regularly on integrity matters and work to keep the markets fair and transparent. The NBA named Kalshi and Polymarket its preferred prediction market exchanges, granting them access to official NBA data supplied by Sportradar, the league’s designated data distribution partner, for settling authorized markets. The exchanges allow users to trade “event contracts” on real-world outcomes, including who wins a given game, and will receive rights to use NBA intellectual property and conduct promotional activities in the United States.

Integrity safeguards prohibit NBA and team personnel from trading NBA event contracts and require cooperation on suspicious-trading investigations. The NBA also expanded its existing agreement with DraftKings to cover prediction markets and expects to announce similar arrangements with other industry operators in the coming weeks. “The agreement reflects a shared commitment to ensuring that NBA-related prediction markets are subject to appropriate regulatory oversight and integrity protections,” the league release read. “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,” CFTC Chairman Michael S. Selig said. He thanked Commissioner Adam Silver for prioritizing “the integrity of professional basketball and America’s financial markets.” The NBA joins Major League Baseball and the National Hockey League in establishing similar arrangements with the regulator.

The agreements arrive amid a legal fight over whether federal commodities rules supersede state gambling laws governing sports prediction markets. In September, the 6th US Circuit Court of Appeals ruled against Kalshi in a case involving Ohio and Tennessee, following a similar decision by the 9th Circuit. An earlier 3rd Circuit ruling found Kalshi’s sports event contracts are “swaps” under the CFTC’s exclusive jurisdiction, shielding them from state gambling laws and allowing the platform to continue operating in New Jersey while its appeal proceeds. The US Supreme Court has been asked to review the New Jersey dispute, with 39 states and Washington, DC supporting the petition. The justices have not yet agreed to hear the case.

State enforcement has continued. 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. The CFTC recently moved to define event contracts as “swaps” squarely within its remit while excluding casino-style gambling.

The NFL, which has not entered into commercial partnerships with prediction market exchanges, backed the Supreme Court petition in an amicus brief filed Thursday, arguing that certain sports event contracts threaten game integrity because they are susceptible to manipulation. The NBA’s move follows the NHL becoming the first major league to license its trademarks to a prediction market and MLB entering an integrity agreement tied to a Polymarket deal. It also follows an October 2025 FBI operation that led to the arrest of Miami Heat guard Terry Rozier and a coach over alleged involvement in gambling schemes, including one centered on manipulating game outcomes to influence bets.