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The NBA became the fourth major sports league to partner with prediction markets, designating Kalshi and Polymarket as its Preferred Prediction Market Exchanges on Monday.
The league also extended its DraftKings partnership into prediction markets and signed a memorandum of understanding with the Commodity Futures Trading Commission.
The deal with Kalshi and Polymarket gives the platforms U.S. rights to NBA intellectual property, marketing and promotional activations. The exchanges also receive official league data from Sportradar to operate and settle authorized NBA sports event contracts.
The sharing of statistics “connects our markets directly to the league’s official record, giving participants an authoritative source for determining outcomes,” according to Kalshi.
In return, the league gains approval rights over which markets the platforms can offer, control it does not have over its sportsbook partners.
Game integrity protections in the agreement
The agreement also requires that the prediction markets platforms work to prevent insider trading of NBA event contracts, report suspicious trades and share information during league investigations. League employees, team personnel and players are barred from trading NBA event contracts.
Two weeks ago, the NBA and WNBA announced a responsible gaming campaign with the National Council on Problem Gambling to educate fans about the risks of sports betting and prediction markets. Philadelphia 76ers player LeBron James has a $15 million a year endorsement deal with Kalshi, and Miami Heat player Giannis Antetokounmpo is an investor in the company.
Creating a regulatory framework
The league’s CFTC memorandum is a statement of intent, not a binding agreement. Neither party is required to share information.
Disclosure is at each party’s discretion, and both can withdraw with 30 days’ notice. The NBA can share CFTC information with its Board of Governors but not with teams without written approval from the CFTC.
DraftKings also in the mix
DraftKings is already an official sportsbook partner of the NBA and steps up its relationship with the league to become an authorized prediction market operator with nationwide promotion rights.
The league indicated that it expects to reach similar deals with FanDuel, Fanatics and other platforms.
An uncertain legal backdrop
The announcement arrives amid legal uncertainty. New York sued Kalshi and Polymarket this year, alleging unlicensed sports gambling businesses, and several states have won injunctions against Kalshi’s sports event contracts.
The NFL filed a Supreme Court brief arguing for state jurisdiction earlier this month, siding with New Jersey on the question of state versus federal jurisdiction of prediction markets, arguing that sports event contracts are essentially sports betting,
The NBA joins MLB, MLS and the NHL in partnering with prediction markets companies.
