NBA strikes deals with prediction markets, with eye on integrity and regulations
MIAMI (AP) — The NBA has struck deals that will make Kalshi and Polymarket the league’s preferred prediction markets, along with an agreement with a federal agency tasked with regulating those exchanges.Those agreements, announced Monday, are intended to provide “significant integrity protections for NBA-related markets,” including limitations on what can be offered on those exchanges,…
The NBA has formed agreements with two prediction market platforms, Kalshi and Polymarket, with the goal of ensuring integrity in NBA-related markets, according to the Associated Press. The deals were announced on Monday and involve the formation of agreements with a federal agency responsible for regulating these exchanges. The NBA aims to have "significant integrity protections" for NBA-related markets, which include limitations on offerings, increased transparency, and a ban on league or team personnel making trades related to league events.
The prediction markets will also need to share information related to investigations and suspicious trading. The NBA has previously implemented similar measures with sportsbook partners and cited instances of flagging irregular betting patterns. Scott Kaufman-Ross, NBA head of media distribution and partnerships, emphasized the importance of regulation, stating that regulated markets offer better transparency and monitoring capabilities.
The NBA is also expanding its partnerships with existing sports betting partners, such as DraftKings, to include prediction-market offerings. While not all states offer legalized sports betting, prediction markets are available in roughly half of the states. The NBA's memorandum of understanding with the CFTC demonstrates a shared commitment to ensuring appropriate regulatory oversight and integrity protections for NBA-related prediction markets.
Kalshi and Polymarket will have access to NBA intellectual property, including logos, league statistical data, and other marketing activations. The NBA has not disclosed the terms of the agreements, other than confirming they are for multiple years. NBA stars, such as Giannis Antetokounmpo and LeBron James, have business relationships with these markets, although one star, Victor Wembanyama, has stated he will never endorse such sites.
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