The NBA asked the Commodity Futures Trading Commission (CFTC) on Thursday to impose tighter restrictions on prediction markets, citing risks to sports integrity. Dan Spillane, the league’s executive vice president, warned in a letter that these markets create incentives for players, officials, and team staff to manipulate outcomes through officiating, injuries, or fan actions.
Integrity at stake
The league is seeking a strict ban on contract trading by anyone under 21 and is calling for increased data sharing between markets and sports leagues to track suspicious activity. This request comes as the CFTC weighs new regulations following a public comment period that closed with nearly 1,500 submissions.
- Manipulation risks. Warren Buffett recently noted that professional athletes have already been caught trying to manipulate these markets.
- Legal precedent. The Justice Department recently charged a U.S. Army soldier with insider trading for profiting from advance knowledge of a military raid via a prediction market.
- Industry split. While the NBA is pushing for curbs, the MLB, NHL, and UFC have signed partnership deals with these same platforms.
The NBA’s push for regulation follows a broader trend of speculative behavior that Buffett described as a ’gambling mood’ taking over financial markets. While platforms like Kalshi and Polymarket allow users to trade on the outcome of events, the NBA argues that the lack of robust oversight threatens public confidence in the league. The CFTC must now decide whether to amend its regulations to include the strict bans and data-sharing mandates requested by the league.