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In an interview released today by sports television network ESPN, Commodity Futures Trading Commission (CFTC) Chair Michael Selig indicated that his agency is working to give sporting leagues broad discretion on which types of prediction contracts should be federally outlawed.
What's the Scoop?
- Cooperative Approach: CFTC Chair Selig confirmed in an interview with ESPN that his agency is working with professional sporting leagues to assess what types of event contracts are vulnerable to manipulation. "We're in talks with all of the major professional sports leagues because it is absolutely essential we work together with the leagues to understand what is going on... and what can be manipulated," Selig said. "If a league is telling us that a contract is going to be readily susceptible to manipulation, we’ll evaluate the risks there."
- MLB Stance: Earlier this month, Major League Baseball entered a pair of partnerships designed to ensure sport betting integrity, establishing an information sharing arrangement with the CFTC and "integrity framework" with
Polymarket that restricts markets the MLB considers vulnerable to manipulation, such as those determined by individual pitches and decisions by managers or umpires. - NFL Request: As per ESPN's report, the NFL sent letters to prediction market operators (including Kalshi and Polymarket) on Sunday, asking them to refrain from offering trades on events that can be easily manipulated or determined in advance, including what announcers say during broadcasts, which celebrities attend games and the upcoming draft. According to ESPN, Kalshi bettors wagered millions of dollars on what announcers said and which celebrities appeared at the Super Bowl earlier this year.
NFL asks prediction markets to stop manipulable trading
The NFL asked prediction market operators to refrain from offering trades on events that can be easily manipulated or determined in advance.
David Purdum
