NBA signs prediction market deals amid betting scandals

The National Basketball Association announced new partnerships with prediction market platforms Kalshi and Polymarket on Monday. The league also expanded its existing agreement with DraftKings to include prediction markets. These new deals carry preferred status and are accompanied by a memorandum of understanding with the U.S. Commodity Futures Trading Commission.

The announcements arrive as the league grapples with ongoing legal issues involving players and coaches. Jontay Porter pleaded guilty in 2024 to conspiracy charges related to a gambling and manipulation scheme. Malik Beasley is reportedly negotiating a plea deal on similar charges. Former player Terry Rozier and coach Chauncey Billups face indictments for allegedly rigging prop bets and participating in rigged poker games, respectively.

Scott Kaufman-Ross, the NBA's head of media distribution and partnerships, stated that protecting the integrity of the game is the league's top priority. The new integrity framework establishes how prediction markets will use official league data and intellectual property. It sets limits on permissible markets and requires information sharing regarding suspicious trades and investigations.

The NBA stated that more partnership expansions will be announced soon. The league's previous ventures have seen mixed results. Sales for the NBA Top Shot NFT marketplace dropped to $762,781 last month. That figure represents a 99.66 percent decrease from the February 2021 peak of $226,350,843. The league renamed its arena to FTX Arena during that period.

State regulators are actively examining the betting industry. New York Attorney General Letitia James is one of several state officials suing Kalshi and other platforms. Senators are investigating reports that DraftKings and other companies use artificial intelligence to target gamblers with a higher likelihood of losing while restricting bets from winners.