CFTC and NHL sign memorandum on prediction market safeguards
In brief
- NHL and CFTC coordinate oversight of prediction market betting on hockey games.
- Memorandum mirrors recent CFTC arrangement with Major League Baseball.
- Prediction market growth raises concerns over insider trading and fraud.
- NHL partners with Kalshi and Polymarket as official prediction market platforms.
Coordination on Event Contracts
The NHL agreed to share information with the CFTC regarding event contracts tied to its games. The MOU stipulates that the league and regulator will endeavor to share information upon request regarding the integrity of professional hockey and related event contract markets. This collaboration aims to detect and prevent manipulation tied to betting on prediction markets.
The NHL officially linked itself last year with both Kalshi and Polymarket as the league's official prediction market partners. The arrangement gives these platforms direct access to NHL data and branding, while subjecting them to league oversight.
Broader Regulatory Push
The CFTC has been pursuing similar arrangements with all of the professional sports leagues. CFTC Chairman Mike Selig framed the move as essential: "This agreement is another step toward safeguarding the integrity of sports and protecting market participants in prediction markets from insider trading, fraud, and other abuses."
NHL Commissioner Gary Bettman echoed the sentiment, stating that integrity remains paramount to the league and fundamental to fan and partner trust. Prediction market betting has seen explosive growth in recent years, and along with its popularity has come concerns that bad actors—including athletes themselves—could exploit the markets. Senate Commerce Committee Chairman Ted Cruz warned that such threats "sow doubt in the minds of fans" and undermine confidence in professional sports.