NBA names Kalshi, Polymarket preferred exchanges, signs CFTC deal

The National Basketball Association has named Kalshi and Polymarket its preferred prediction market exchanges and signed an information-sharing agreement with the US Commodity Futures Trading Commission (CFTC) aimed at protecting the integrity of basketball-related markets.

According to Monday’s announcement, the agreements will give Kalshi and Polymarket access to official NBA data supplied by Sportradar, the league’s designated data distribution partner, for settling authorized markets. Both platforms will have rights to use NBA intellectual property and conduct promotional activities in the United States.

The partnerships include integrity safeguards, prohibiting NBA and team personnel from trading NBA event contracts and requiring cooperation on suspicious trading investigations.

Beyond the two exchanges, the NBA expanded its existing agreement with DraftKings to cover prediction markets and said it expects to announce similar arrangements with other industry operators in the coming weeks.

In a separate announcement, CFTC Chairman Michael S. Selig said the agreement with the NBA would strengthen information sharing to address insider trading and fraud in prediction markets. The NBA joins Major League Baseball and the National Hockey League in establishing similar arrangements with the regulator.

Related: Kalshi strikes deal with S&P Dow Jones Indices to expand financial event contracts

States challenge federal oversight of prediction markets

The NBA’s agreements come amid an ongoing legal battle over whether federal commodities rules supersede state gambling laws governing sports prediction markets.

The dispute has produced conflicting court decisions. In September, the 6th US Circuit Court of Appeals ruled against Kalshi in a case involving Ohio and Tennessee, following a similar decision by the 9th Circuit. An earlier ruling by the 3rd Circuit, however, allowed Kalshi to continue operating in New Jersey while its appeal proceeds.

State enforcement actions have continued. On Oct. 20, Utah Attorney General Derek Brown sued Kalshi, alleging that the platform had facilitated illegal betting in the state since 2024. Utah officials are seeking to recover an estimated $30 million to $60 million in profits allegedly earned by Kalshi and other defendants.

Kalshi event contract. Source: Kalshi

The US Supreme Court has been asked to review the New Jersey dispute, with 39 states and Washington, DC, supporting the petition. The National Football League, which has not entered into commercial partnerships with prediction market exchanges, also backed the petition, arguing that certain sports event contracts threaten game integrity because they are susceptible to manipulation. The justices have not yet agreed to hear the case.