-
Shweta Surendran
multiple authors
The NBA on Thursday asked the nation’s top commodities regulator to impose tougher restrictions on players, game officials and team staff to ensure prediction markets do not undermine the integrity of the game and fan trust.
NBA executive vice president and assistant general counsel Dan Spillane said in a letter to the Commodity Futures Trading Commission that the integrity concerns posed by prediction markets are similar to the concerns associated with sports betting.
The letter comes as the CFTC is considering whether to revise its rules on prediction markets. The NBA’s call for tighter controls stands in contrast to other sports leagues like MLB, the NHL and the UFC, which sign partnership deals with prediction markets.
“There is no higher priority for the NBA than protecting the integrity of our games and maintaining the public’s confidence in our league and our sport,” Spillane wrote, making clear that the league takes no position regarding the ongoing battle between states and the CFTC over the authority to regulate prediction markets.
But the industry needs “strong and comprehensive regulations,” he wrote, citing inherent risks to athletes and others who hold contracts in the sports in which they participate.
Spillane identified specific markets that may be prone to manipulation, such as markets related to substitutes, injuries and fan actions. He also called for a strict ban on contract trading by anyone under the age of 21.
The League’s submission is in response to a call for public comment as part of the CFTC’s rule-making process on prediction markets. The comment period began March 13 and ended Thursday. The agency reported receiving approximately 1,500 comments.
Prediction markets, such as Kalshi and Polymarket, allow users – 18 and over – to trade on the yes/no outcome of events, including sports.
The letter also called for increased cooperation between prediction markets and leagues regarding suspicious trading, data sharing and league investigations.
