NBA Warns CFTC of Integrity Risks in Sports Prediction Markets
The National Basketball Association (NBA) has written a letter to the Commodity Futures Trading Commission (CFTC) regarding the potential dangers of allowing sports prediction markets.
LISTEN TO THIS ARTICLE:The letter, signed by Alexandra Roth, the NBA's Vice President and assistant general counsel, emphasizes the stark contrast between the regulatory framework governing sports betting and the relatively lax oversight of sports prediction markets.
Without oversight and regulation tailored to the specific circumstances of sports wagering, the integrity risks posed by sports prediction markets are more significant and more difficult to manage than those presented by legal, regulated sports gambling.
Roth noted that the NBA's backing of legal sports betting hinges on its regulated nature, which protects fans and the league.
The letter continued, "While exchanges and brokers operate under the general auspices of the CFTC, that broad-based financial oversight does not include the kind of sports-specific controls and protections that are the hallmark of state sports gambling regulations."
Leagues Unite Against Unregulated Markets Oversight
The NBA is the second major professional sports league to warn about prediction markets, following Major League Baseball (MLB), which submitted comments to the CFTC in March 2025. The move was prompted by the recent introduction of NBA single-match winner markets by Kalshi and Crypto.com during the playoffs.
Roth cautioned that the rapid expansion of prediction markets through self-certification implies that more specialized markets, such as those focused on individual player performance or officiating decisions, may soon follow.
However, Kalshi has pledged to refrain from offering player props and instead focus on events with real-world financial consequences.
More Regulation News
Opposition from States
In addition to the sports leagues, Kalshi and other prediction market platforms are facing opposition from regulators and lawmakers in several states.
Last week, Michigan's gaming regulator, the MGCB contacted the CFTC about prediction markets, urging the body to step up supervision of the activity.
Kalshi, Robinhood and Crypto.com have also been served cease and desist letters in several jurisdictions.
In related news, the CFTC has dropped its appeal in a case against Kalshi's election markets. While this decision does not influence the separate legal challenges to Kalshi's sports markets, it may signal a shift in the CFTC's regulatory priorities over prediction markets.
RELATED TOPICS: Regulation
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