The National Basketball Association (NBA) has entered into agreements with Kalshi and Polymarket, designating them as its Preferred Prediction Market Exchanges. The deals aim to establish a regulated framework for NBA-related prediction markets and enhance cooperation with US regulators.
NBA Expands into Prediction Markets
Under the new agreements, Kalshi and Polymarket are authorized to operate NBA-related prediction markets, subject to restrictions on market types and prohibitions on league and team personnel trading on NBA event contracts. Both platforms are also required to share information with the NBA regarding investigations and suspicious trading activity.
Additionally, the NBA signed a memorandum of understanding with the US Commodity Futures Trading Commission (CFTC) to facilitate information sharing and regulatory cooperation in the prediction market sector.
Exclusive Rights and Data Access
As preferred exchanges, Kalshi and Polymarket gain rights to use NBA intellectual property and marketing channels, and they will receive official NBA data through Sportradar, the league’s data distribution partner. These measures are intended to help operate and settle authorized NBA-related prediction markets more effectively.
The partnerships are positioned as a way to enhance fan engagement while maintaining the integrity of NBA games. The league’s agreements include enhanced integrity obligations and market restrictions that align with its sports betting rules.
Implications for Industry Stakeholders
For operators and affiliates, the NBA’s move signals growing mainstream acceptance of prediction markets and the importance of regulatory compliance. The agreements with Kalshi and Polymarket provide a model for industry collaboration with sports leagues and regulators, potentially opening new revenue streams and fan engagement opportunities. The NBA’s expanded deal with DraftKings and plans to involve other betting partners further indicate a trend toward integrating prediction markets with established betting frameworks.
Regulatory Landscape and Ongoing Legal Debate
The NBA’s efforts come amid ongoing disputes over regulatory authority for prediction markets. New Jersey, supported by 39 states and the District of Columbia, has petitioned the Supreme Court to clarify whether states or the federal government should regulate these markets. The NBA favors a uniform national approach, while the NFL supports state-level regulatory authority. The outcome of this legal debate could shape the future of prediction markets in the US.
Key takeaways
- NBA designates Kalshi and Polymarket as Preferred Prediction Market Exchanges.
- Agreements include integrity safeguards, data access, and marketing rights.
- NBA expands its partnership with DraftKings to cover prediction markets.
- Regulatory authority over prediction markets remains under legal dispute.
Update (27.10.2026)
On October 26, 2026, Polymarket ceased offering new sports event contracts to users in Michigan, joining Coinbase, Robinhood, and Kalshi as the fourth operator to restrict such activities in the state. Michigan users can still close existing sports positions, while non-sports markets remain accessible. The NBA's memorandum of understanding with the CFTC is nonbinding and does not mandate information sharing, leaving disclosures at the discretion of each party. Despite the NBA's push for stricter prediction market regulations—including raising the trading age to 21 and enhancing identity verification—the new agreements do not set a minimum trading age or require mandatory data sharing with the CFTC. Meanwhile, the CFTC and U.S. Department of Justice have sued Utah and its Attorney General to prevent enforcement of state gambling laws against federally regulated prediction markets, following Utah's lawsuit to recover alleged illegal gambling proceeds from Kalshi and others. Utah is now the tenth state where the CFTC has challenged state-level enforcement, with mixed results in federal courts. Additionally, Nasdaq has applied for a CFTC license to offer binary event contracts on U.S. inflation data, and another individual has pleaded guilty in the NCAA point-shaving scandal. Tribal organizations have also stepped up coordinated opposition to prediction markets.