CFTC and NBA sign prediction market integrity MOU, the third with a US sports league
The US Commodity Futures Trading Commission and the National Basketball Association signed a memorandum of understanding on October 26 to share information on the integrity of professional basketball and related event contracts. The NBA follows Major League Baseball and the National Hockey League. The text is non-binding and leaves all information sharing to each side's discretion.
2 Min Read
Overview
- The CFTC and the NBA signed a memorandum of understanding (MOU) on October 26, 2026, covering the integrity of professional basketball and the event contract markets tied to it.
- The NBA is the third league to sign such an MOU with the CFTC, after MLB on March 19 and the NHL on May 21.
- The MOU does not create legally binding obligations, and neither party is required to share information.
- The NBA may pass information from the CFTC to its Board of Governors, but not to teams unless the CFTC agrees in writing.
What the MOU says
The CFTC announced the agreement on October 26. Under the published text, the two sides will cooperate mainly through "ongoing, informal consultations", periodic meetings and written requests, and will try to answer information requests in a timely manner.
The CFTC may use NBA information only for its duties under the Commodity Exchange Act. The NBA may use CFTC information only to protect the integrity of the game and public confidence in the league. Information received is presumed confidential.
The NBA may share CFTC information with its Board of Governors. It may not pass it to teams unless the CFTC agrees in writing, which both sides expect to happen when the information relates to an active NBA integrity investigation.
The CFTC named General Counsel Tyler Badgley as its contact. The NBA named Dan Spillane, Executive Vice President and Assistant General Counsel for League Governance and Policy. The MOU took effect on signature and either side can end it with 30 days' written notice.
"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.
On the same day, Kalshi said it had become a "Preferred Prediction Market Exchange" of the NBA, and AP reported that Polymarket had a similar deal. The CFTC has also been acting on sports contracts directly, including its recent stay of ProphetX and Novig contracts. State regulators are pushing back too, as in New York's subpoena petition against Kalshi.
Cite This Article
Topics In This Story
Related Countries
Andrea Rivera explores the evolving world of iGaming through the companies trying new things and the markets taking shape around them. An editor at AskSpinner News, Andrea combines research with storytelling, bringing information and perspective to industry analysis without losing the story that makes it worth reading.
More From This Author
