NBA joins pro sports leagues on CFTC prediction markets bandwagon while NFL balks
The NBA has signed a data-sharing agreement with the CFTC to regulate sports prediction markets, aligning with other major leagues. Meanwhile, the NFL is opposing this federal oversight, arguing that state-level gaming authorities provide more rigorous protection.
Why it matters
This highlights a significant legal and regulatory conflict between federal oversight and state-level gambling laws regarding the rapidly growing prediction market industry.
The NBA, like Major League Baseball and the National Hockey League before it, established a data-sharing memorandum of understanding with the Commodity Futures Trading Commission that oversees federal regulation of exchanges that deal with event contracts — the simple yes-or-no trades behind most sports betting. The NBA's arrangement announced Monday is said to come with constraints meant to maintain the integrity of such wagering.
At the same time, like other leagues, the NBA partnered with the top platforms as their "preferred exchanges."
"As this category develops, we believe it is important to work constructively with regulators and operators to help ensure that appropriate safeguards are in place," said Scott Kaufman-Ross, the NBA's head of media distribution and partnerships, in a statement. "These partnerships represent an important step in establishing a framework that creates new opportunities to engage our fans.”
Also covering this story
3 other newsrooms covered this event. We read each version separately.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in