U.S. sports leagues and players’ unions are urging the CFTC to adopt stricter oversight and safeguards over sports-event contracts, while calling for a direct role in enforcing them.
Major U.S. sports leagues and players’ associations have urged the Commodity Futures Trading Commission (CFTC) to impose stricter controls on prediction markets. They warn that sports event contracts have the same integrity risks as sports betting, but currently lack comparable safeguards.
As part of the CFTC’s public comment submissions on prediction market regulation, the NBA, MLB, PGA TOUR, ATP Tour, and a coalition of players’ unions shared common concerns: without tighter regulation, prediction markets are susceptible to manipulation, insider information, and athlete harassment.
Many submissions also call for a direct role for sports leagues in shaping, approving, and monitoring the markets tied to their competitions.
The submissions arrive as the CFTC considers how to regulate event contracts in a rapidly evolving market that increasingly overlaps with traditional sports betting.
Players’ Unions Frame Prediction Markets as a Safety and Labor Issue
A joint submission from the NFLPA, NBPA, MLBPA, NHLPA, and MLSPA focuses on athlete welfare. It argues that the expansion of sports betting has already led to increased harassment of players and their families. Unregulated prediction market contracts could further amplify that.
The unions warn that from a fan’s perspective, there’s little distinction between a bet on a traditional sportsbook and a prediction market contract. That leads to the same behaviors, including abuse and threats.
The submission calls for:
- A ban on contracts tied to “negative outcomes.” These include injuries, penalties, and other events that a single player can influence
- Restrictions on markets linked to broadcast language or other novel contracts
- Prohibitions on the use of biometric, health, and performance data
- Fan conduct policies and potential bans for abusive behavior
The submission also calls for due-process rights for athletes in any integrity investigations and equal access to information shared among leagues, regulators, and market operators.
The unions emphasized that they are taking no position on CFTC’s authority over prediction markets, instead focusing on ensuring protections if such markets are allowed to operate.
NBA Calls for Structural Overhaul and Market Limits
The NBA’s submission is among the most detailed, focusing on both market structure and regulatory design.
The league argues for sports betting-style regulation, including strict identity verification requirements. The NBA warns that certain blockchain-based prediction market platforms lack comparable know-your-customer (KYC) systems, creating integrity challenges.
It calls for:
- Blocking athletes, officials, and team personnel from trading on league-related contracts
- Raising the minimum participation age to 21
- Real-time reporting of suspicious or prohibited trades
- Data-sharing requirements between exchanges and leagues
- Cross-market surveillance, including sharing suspicious activity across platforms
The NBA also urges limits or bans on categories viewed as highly susceptible to manipulation. These include player prop markets, injury- or officiating-related contracts, and markets involving developmental leagues such as the G League.
The league also raises concerns about prediction market products resembling micro-betting or parlay-style contracts, suggesting potential amplified integrity risks. Crucially, the NBA argues that leagues should play a central role in determining which markets are permitted.
Notably, the submission comes amid reports that the NBA is accelerating talks with prediction market platforms Kalshi and Polymarket about official partnerships.
PGA TOUR Highlights Operational and Settlement Risks
The PGA TOUR argues that the multi-day structure of golf tournaments could create greater opportunities for manipulation if markets are poorly designed.
Its recommendations emphasize:
- The use of official league data as the sole source for contract settlement
- Clear, pre-disclosed settlement methodologies to reduce ambiguity
- Robust integrity monitoring and reporting frameworks
- KYC requirements enabling the identification of individual traders
- A minimum participation age of 21
The TOUR also supports leagues’ control over markets before launch. It calls for harm-reduction tools, education resources, and enforceable penalties for violations.
ATP Tour Warns of Incentive Misalignment in Prediction Markets
The ATP Tour argues that prediction markets may pose risks that differ, and possibly exceed, those of traditional sportsbooks.
The ATP further argues that, unlike sportsbooks, prediction market platforms earn commissions regardless of outcomes, thereby reducing incentives to limit high-risk or easily manipulated markets.
The organization calls for:
- Strong KYC requirements, including identification of traders’ affiliations with players or leagues
- Mandatory cooperation with integrity investigations
- Restrictions on high-risk contract types, particularly those tied to injuries, officiating, or in-match events
- Settlement based exclusively on official data, alongside licensing agreements with leagues
The ATP also pushes back against the current self-certification model. It argues that high-risk markets should be subject to full regulatory review.
MLB Seeks to Formalize League–Exchange Collaboration
MLB’s submission calls for formal regulation embedding collaboration between leagues and prediction market operators.
While it says it supports the CFTC’s recent advisory on prediction markets, MLB argues that guidance alone is insufficient. Rather, it should be codified into enforceable rules.
Its proposals include:
- Requiring exchanges to consult leagues before listing new contracts
- Allowing leagues to flag or restrict markets deemed high risk
- Establishing formal information-sharing agreements between exchanges and leagues
- Mandating direct reporting of suspicious trading activity
MLB also supports extending these obligations beyond exchanges to intermediaries such as futures commission merchants and introducing brokers.
In addition to outright bans, the league suggests tools such as position limits to manage risk in certain markets, offering a more flexible approach than some other stakeholders.
MLB also noted it recently entered into a memorandum of understanding with the CFTC to support collaboration on integrity issues.
Common Theme: Market Design and Oversight
Across all submissions, a consistent set of themes emerges. The leagues and organizations agree that prediction markets:
- Present integrity risks similar to sports betting
- Require more robust identity verification systems
- Should rely exclusively on official league data
- Must restrict or closely monitor certain high-risk market types
- Need stronger consumer and athlete protections
Multiple shareholders also criticize CFTC’s current self-certification framework, arguing that sports-related contracts require stricter oversight and possibly pre-approval.
Notably, both leagues and players’ associations are pushing for a direct role in oversight — from market approval to data access and integrity investigations.
The post Sports Leagues, Players Unions Push CFTC for Control Over Prediction Markets appeared first on Gambling Insider.
