TL;DR:
- The CFTC signed a memorandum of understanding with MLB to share data and defend the integrity of sports activities prediction markets.
- Polymarket was named MLB’s unique prediction markets associate; it should have entry to official logos, information and model publicity at league occasions.
- The CFTC is engaged in a dispute with state regulators over jurisdiction on sports activities betting in prediction markets.
The CFTC signed a memorandum of understanding with Main League Baseball, marking the primary information-sharing settlement between the U.S. federal derivatives regulator and an expert sports activities group. Its purpose is to strengthen consumer safety in opposition to fraud, manipulation and different abuses in prediction markets tied to skilled baseball.
CFTC Chair Mike Selig described the memorandum as a step ahead in market integrity and resilience. Concurrently, Polymarket was designated by MLB as its unique prediction markets associate, having access to official logos, real-time information and model presence at league occasions. The settlement additionally contains an integrity framework that encompasses the restriction of contracts that pose a threat to the recreation, reminiscent of markets on particular person pitches, supervisor choices or umpire efficiency.
The Enlargement of Markets Unsettles the States
Prediction markets, led by platforms reminiscent of Polymarket and Kalshi, have damaged into sports activities, politics and well-liked tradition over the previous few years, sparking a significant regulatory dispute between federal and state authorities. A number of state gaming regulators argue that their jurisdiction additionally covers the exercise of those markets, whereas Selig contends that federal authority prevails over state legal guidelines on sports activities betting.
The CFTC Streamlines Regulatory Operations
MLB Commissioner Rob Manfred publicly backed the CFTC’s place. In statements to ESPN, he famous {that a} federal regulatory framework considerably simplifies the league’s operations in comparison with the fragmented state mannequin that governs conventional sports activities betting.
Considerations over sports activities integrity are rising. In 2025, two Cleveland Guardians pitchers had been charged with accepting bribes to control the outcomes of particular pitches. MLB had already seen Main League Soccer associate with Polymarket earlier this yr, whereas the NHL was the primary main league to announce an alliance with a prediction markets platform, again in October of final yr.
