TL;DR:
- The CFTC signed a memorandum of understanding with MLB to share info and defend the integrity of sports activities prediction markets.
- Polymarket was named MLB’s unique prediction markets associate; it is going to 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 knowledgeable 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 consists of an integrity framework that encompasses the restriction of contracts that pose a threat to the recreation, comparable to markets on particular person pitches, supervisor selections or umpire efficiency.
The Growth of Markets Unsettles the States
Prediction markets, led by platforms comparable to Polymarket and Kalshi, have damaged into sports activities, politics and well-liked tradition over the previous few years, sparking a serious 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.
Issues over sports activities integrity are rising. In 2025, two Cleveland Guardians pitchers had been charged with accepting bribes to govern the outcomes of particular pitches. MLB had already seen Main League Soccer associate with Polymarket earlier this 12 months, whereas the NHL was the primary main league to announce an alliance with a prediction markets platform, again in October of final 12 months.
