The NBA is the latest major sport in the U.S. to enter the realm of prediction markets, as indicated by a memorandum of understanding announced on Monday with the Commodity Futures Trading Commission (CFTC). In this agreement, Kalshi and Polymarket are designated as the league's "Preferred Prediction Market Exchanges."
With the NBA's 82nd season having kicked off last week, maintaining integrity within NBA-related betting markets is a critical concern. The partnerships formed with Kalshi and Polymarket aim to implement stringent integrity measures, which will include restrictions on the types of markets allowed, bans on trading contracts by NBA and team personnel, and obligations for sharing information related to investigative and suspicious trading activities.
Kalshi and Polymarket will gain access to NBA intellectual property, rights to marketing within the U.S., and official data feeds from Sportradar, the league's data partner. Additionally, the NBA is set to enhance its existing partnership with DraftKings to encompass prediction markets and nationwide promotion. Further details regarding expanded partnerships with the NBA’s other betting collaborators are anticipated soon.
These strengthened partnerships will be accompanied by additional integrity requirements consistent with the league’s existing sports betting restrictions, which were outlined ahead of the season's start.
Scott Kaufman-Ross, the NBA's head of media distribution and partnerships, emphasized that safeguarding the league's integrity is the organization’s "top priority." He stated that by establishing prediction market partnerships and signing the MOU with the CFTC, the NBA aims to create a framework that opens new engagement opportunities with fans.
As more leagues in the U.S. explore partnerships with prediction market operators, the NBA aligns itself with a growing trend. Polymarket has already partnered with the MLB, UFC, and MLS, while both Kalshi and Polymarket have formed alliances with the NHL, and now the NBA. Notably, Monday marked a rare occasion when all four major U.S. sports leagues—NFL, NBA, MLB, and NHL—were in action simultaneously, referred to as a "sports equinox."
Ahead of the official announcement, several high-profile NBA players had already begun endorsing these platforms. Miami Heat forward Giannis Antetokounmpo, a two-time MVP, signed a deal with Kalshi in February, while LeBron James, the NBA's all-time leading scorer, was featured in an ad for Polymarket in September. James, now in his 24th NBA season with the Philadelphia 76ers, has a history of partnerships, including one with DraftKings.
Adam Barrick, Kalshi’s head of sports partnerships, hailed the alliance with the NBA as a "significant milestone," reaffirming the company’s commitment to ensuring fair, safe, and transparent markets. Similarly, Ari Borod, Polymarket’s president of sports business development, asserted that the company will collaborate with the NBA to foster a "safe, transparent prediction market ecosystem for everyone." Both executives come with substantial experience in the sports betting landscape—Barrick previously worked at DraftKings for over six years, while Borod has held positions at FanDuel, Action Network, and Fanatics.
The five-page MOU outlines a collaborative relationship primarily focused on information sharing between the NBA and CFTC. Although the document emphasizes mutual discussions, cooperation, and information exchange regarding common interests, it is not legally binding and neither party is compelled to provide information. Any shared information will be at each party's "sole discretion."
The agreement anticipates cooperation will largely occur through informal consultations, periodic meetings, and practical arrangements developed by both parties. CFTC General Counsel Tyle Badgley and NBA Executive Vice President Dan Spillane will act as the primary contacts for this partnership.
CFTC Chair Michael Selig described the MOU as a "responsible step toward protecting sports integrity and market participants from abuses in prediction markets such as insider trading and fraud." Notably, NBA Commissioner Adam Silver did not comment in the released statements, although he has been a proponent of legal sports betting since 2014, before many states legalized it.
Silver, however, has expressed concerns regarding the current state-by-state regulatory environment, which complicates information sharing and investigations.
The NBA has faced multiple gambling scandals lately, with incidents such as the lifetime ban of former Toronto Raptors forward Jontay Porter for gambling-related offenses in 2024 and ongoing legal troubles for players like Terry Rozier and Malik Beasley. These violations were detected by integrity monitors aided by state gambling regulators. To counter these integrity challenges, the NBA has prohibited certain betting markets this season, including bets on tip-off winners and specific player shots.
At the NBA Summer League, Silver mentioned the league’s "remarkably little control" over its intellectual property. The new partnerships and MOU are indicative of efforts to address these concerns. He also remarked that state regulation "puts the league in a difficult position," suggesting that a federal-level oversight would be beneficial for maintaining integrity.
Interestingly, the CFTC serves as a federal regulator, but there are significant questions regarding its capacity to effectively oversee prediction markets while also managing the much larger derivative and swap markets.
Matt Rybaltowski contributed to this report.
