From Fastcompany · · 2m
NBA backs prediction markets Kalshi and Polymarket
The NBA has made Kalshi and Polymarket its official prediction market exchanges, with integrity safeguards including player trading bans and suspicious activity monitoring.
In brief
The NBA has made Kalshi and Polymarket its official prediction market exchanges, with integrity safeguards including player trading bans and suspicious activity monitoring. The NBA designated Kalshi and Polymarket as preferred prediction market exchanges with integrity protections including bans on league personnel…
NBA names official prediction markets
The NBA announced Monday that Kalshi and Polymarket will be the league's preferred prediction market exchanges, with the title Preferred Prediction Market Exchange of the NBA.
Integrity protections in the deals
The agreements include limitations on what can be offered, transparency on suspicious user patterns, and bans on league and team personnel from trading on league events.
Information sharing on suspicious activity
The prediction markets will have information-sharing obligations relating to investigations and suspicious trading, similar to guardrails the NBA has with sportsbook partners.
Why the NBA chose regulation
Scott Kaufman-Ross, the NBA's head of media distribution and partnerships, said regulated markets with transparency and monitoring protect game integrity better than unregulated ones.
“If you're going to be betting on our games or trading on our games or playing fantasy around our games, it's better for it to be regulated than unregulated.”
Expanding existing sportsbook deals
The NBA is also expanding agreements with current official sports betting partners, such as DraftKings, to include their prediction-market offerings.
Prediction markets reach all states
Not all states offer legalized sports betting, but prediction markets are essentially available in all fifty states, giving the NBA broader reach.
Ongoing state litigation
More than a dozen states are involved in litigation over prediction markets, with disagreement over whether federal or state authorities should regulate them.
NFL seeks Supreme Court ruling
Earlier this month the NFL asked the Supreme Court to rule on the regulation of prediction markets, as the U.S. Commodity Futures Trading Commission contends it has exclusive jurisdiction.
NBA restricts certain wagers
Earlier this month, the NBA told sportsbooks they cannot offer certain types of wagering this season, including which players record the first stat, the opening tip outcome, and under bets on limited-minute players.
Similar restraints expected
The deals announced Monday with Kalshi and Polymarket are expected to have similar restraints on the types of wagers that can be offered on NBA games.
Federal agency agreement included
The NBA also struck an agreement with a federal agency tasked with regulating prediction market exchanges as part of the overall integrity framework.
What it means
The NBA designated Kalshi and Polymarket as preferred prediction market exchanges with integrity protections including bans on league personnel trading and monitoring of suspicious patterns.
