Key Highlights
- The CFTC and NBA signed a memorandum of understanding on October 26, 2026, covering professional basketball integrity and related prediction markets.
- CFTC Chairman Michael S. Selig cited insider trading and fraud as risks the cooperation is intended to address.
- The NBA named Kalshi and Polymarket its preferred prediction market exchanges, with restrictions on eligible markets and trading by league and team personnel.
The US Commodity Futures Trading Commission (CFTC) and the National Basketball Association (NBA) signed a memorandum of understanding (MOU) on October 26 to establish a framework for sharing information on professional basketball integrity and related prediction markets.
In its announcement published on October 26, the CFTC said the agreement would support communication with the NBA on integrity-related matters.
The MOU provides for consultations, periodic meetings, and requests for relevant information but does not require either party to share information or create legally binding obligations.
CFTC cites insider trading and fraud risks
CFTC Chairman Michael S. Selig said the agreement continues the agency’s efforts to increase data sharing with professional sports leagues.
“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,” Selig said in the CFTC announcement.
He thanked NBA Commissioner Adam Silver for working with the regulator to protect professional basketball and US financial markets.
The CFTC did not identify a specific investigation or allege misconduct involving the NBA or any particular prediction market platform.
NBA names Kalshi and Polymarket preferred partners
In a separate October 26 announcement, the NBA designated Kalshi and Polymarket as its preferred prediction market exchanges. The league said the agreements include restrictions on the markets the platforms can offer, prohibit league and team personnel from trading NBA event contracts, and require information sharing related to investigations and suspicious trading.
The preferred partners will also receive rights to use NBA intellectual property, marketing opportunities across US media channels, and access to official NBA data from Sportradar for authorized markets and settlement, according to the league.
Scott Kaufman-Ross, the NBA’s head of media distribution and partnerships, said the league intended to work with regulators and operators as the prediction market sector develops.
“Protecting the integrity of the game is our top priority,” Kaufman-Ross said. He said the partnerships were intended to establish safeguards as the market develops.
Kalshi’s head of sports partnerships, Adam Barrick, welcomed the agreement, while Polymarket President of Sports Business Development Ari Borod said the partnership would let customers trade contracts tied to basketball through the platform. The announcements did not provide estimates of the deals’ expected effect on trading activity.
NBA expands DraftKings agreement
The NBA also expanded its agreement with DraftKings to include prediction markets and nationwide promotion.
The league said it planned to extend its relationships with other existing official sports betting partners and additional industry participants in the coming weeks. It said these agreements would include prediction-market restrictions and integrity obligations aligned with its sports betting rules.
The announcement did not list every permitted market or provide a full breakdown of the restrictions.
X Post highlights NBA’s approval
Basketball reporter Mike Vorkunov of The Athletic discussed the commercial arrangements in an October 26 post on X.
Vorkunov said Kalshi and Polymarket would be able to use NBA intellectual property on their platforms, while the league would retain approval rights over the markets offered.
The post adds context to the commercial arrangements; these approval rights should be distinguished from the separate CFTC-NBA MOU.
MOU sets rules for information sharing
Under Article II of the MOU, representatives designated by the CFTC and NBA will seek to meet as needed to discuss issues that could affect basketball integrity and related event contract markets.
The parties intend to respond to requests for relevant information in a timely manner. Requests should be made in writing where possible and sent to designated points of contact.
Each party retains discretion over whether to provide information, and neither is required to create or maintain records for the other.
Confidentiality rules govern shared information
The MOU generally treats information exchanged under the agreement as confidential unless the party providing it designates otherwise in writing.
The CFTC may use information received from the NBA in connection with its statutory responsibilities under the Commodity Exchange Act. The NBA may use information received from the CFTC to protect professional basketball integrity and public confidence in the league.
The agreement allows the NBA to disclose CFTC information to members of its Board of Governors. It generally prohibits sharing that information with NBA member teams without written permission from the CFTC. The document says the regulator is expected to provide permission when the information relates to an active NBA integrity investigation.
The MOU also outlines procedures for responding to subpoenas, court orders, and other demands for confidential information, subject to applicable law.
CFTC retains its enforcement authority
The MOU does not supersede existing laws or regulations, including the Commodity Exchange Act and the Privacy Act of 1974, and does not create enforceable rights for third parties. It also states that nothing in the agreement changes the CFTC’s authority or responsibility to enforce the Commodity Exchange Act and its regulations.
The MOU names CFTC General Counsel Tyler Badgley and NBA Executive Vice President and Assistant General Counsel for League Governance and Policy Dan Spillane as the primary points of contact. Each may designate up to two additional staff members.
The agreement takes effect upon signature and may be terminated by either party with 30 days’ written notice. Its confidentiality provisions continue to apply to information exchanged under the MOU after termination.
CFTC Chairman Michael S. Selig and NBA Commissioner Adam Silver are named as signatories.
Earlier MOU deals involved digital assets and regulation
The CFTC-NBA agreement follows other MOUs involving digital assets and financial oversight.
On October 7, Tether and Kazakhstan’s central bank signed an MOU to explore a tenge-based stablecoin, digital payments, real-world asset tokenization and decentralized finance use cases as Kazakhstan developed its Crypto City ecosystem.
On October 1, The Crypto Times reported that regulators in New York and Wyoming signed an MOU to coordinate digital asset oversight, including information sharing, examinations, licensing and enforcement.
In September, New York Stock Exchange and Blockchain.com signed an MOU to explore distributing tokenized US stocks to crypto users. The plan remained subject to regulatory approvals, and the companies had not announced a launch date.
These examples provide context for the use of MOUs to establish cooperation, although their objectives and legal effects differ.
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