The NBA asked the Commodity Futures Trading Commission to tighten rules on prediction markets, warning that player, official and staff participation could undermine game integrity. In a letter from Dan Spillane, the league urged the CFTC to impose stricter limits as the agency weighs new regulations; the public comment window closed Thursday after nearly 1,500 submissions, according to the league’s filing and the regulator’s docket tallied by ESPN.
The NBA flagged markets tied to officiating, injuries and even fan actions as most vulnerable to manipulation, and pushed for a hard ban on trading by anyone under 21. The league also called for deeper data sharing and cooperation on suspicious activity. That stance contrasts with other leagues: MLB, the NHL and the UFC have signed partnership deals with prediction platforms, per ESPN.
Federal turf fight
Texas Lt. Gov. Dan Patrick told state senators to study how to close gambling loopholes tied to prediction markets, but any crackdown would run into Washington. The Trump administration has asserted federal oversight, and the CFTC has sued to block five states from acting against operators, including a case filed Tuesday against Wisconsin, the Texas Tribune reports. Operators like Kalshi argue they are federally regulated futures venues, not state-governed gambling outfits.
The CFTC opened a rulemaking in mid-March and took comments through Thursday. The National Conference of State Legislatures urged the agency to place sports event contracts under state gambling laws. At a House hearing in mid-April, CFTC Chair Michael Selig described exchanges as the first line of defense, with the agency as the backstop, per the Tribune.
- Kalshi fined three congressional candidates, including one in Texas, for wagering on their own races and banned them from the exchange, the Tribune reports.
- A U.S. Army soldier was arrested after allegedly using classified information for a roughly $410,000 profit on another platform, according to the Tribune.
- The CFTC has advised that contracts tied to war, assassination or terrorism are off-limits; Polymarket has hosted war-related markets outside the U.S. while maintaining a U.S. product under CFTC oversight, the Tribune notes.
Three federal appeals courts are reviewing state–operator disputes over prediction markets, with oral arguments completed in two cases and a third set for next week, per the Tribune.
