Key Points:
The US Commodity Futures Trading Commission signed a memorandum of understanding with the National Hockey League to oversee prediction market integrity tied to professional hockey events.
The agreement follows a similar partnership between the CFTC and Major League Baseball earlier this year as prediction markets rapidly expand across US sports.
The CFTC continues asserting exclusive authority over prediction markets while pursuing legal action against multiple US states attempting to regulate or restrict the platforms.
CFTC Deepens Push Into Sports Prediction Markets
The US Commodity Futures Trading Commission is expanding its involvement in sports-related prediction markets after signing a new memorandum of understanding with the National Hockey League.
The agreement was announced Thursday by CFTC Chair Michael Selig, who currently serves as the agency’s sole commissioner following multiple departures from the regulator over the past year.
According to the CFTC, the partnership is designed to help “protect the integrity of professional hockey and maintain fair and transparent prediction markets.”
The regulator said the agreement will allow both organizations to coordinate and share information related to sports event contracts listed on prediction market platforms such as Kalshi and Polymarket.
Focus on Fraud and Insider Trading
Selig stated that the arrangement aims to protect prediction market users from insider trading, fraud and market manipulation as trading activity surrounding sports events continues growing rapidly.
The agreement reflects the CFTC’s increasingly aggressive effort to position itself as the primary federal authority overseeing event-based prediction markets in the United States.
Under the memorandum, the NHL and the CFTC will work together to monitor event contracts connected to professional hockey competitions, including playoff outcomes and championship events.
Prediction markets tied to the Stanley Cup playoffs are already active on major platforms, with contracts allowing users to speculate on team performance and tournament outcomes.
The NHL’s 2026-27 season is scheduled to begin in September.
Similar MLB Deal Signals Broader Expansion
The NHL agreement follows a similar memorandum signed between the CFTC and Major League Baseball in March.
That partnership coincided with MLB announcing Polymarket as its Official Prediction Market Exchange, highlighting the growing intersection between professional sports leagues and blockchain-based prediction platforms.
The deals suggest major sports organizations are increasingly willing to cooperate with financial regulators as prediction markets evolve into a larger segment of digital finance and sports engagement.
CFTC Continues Fighting States Over Regulation
Under Selig’s leadership, the CFTC has repeatedly argued that prediction markets fall exclusively under federal commodities law rather than state gambling regulation.
The agency has continued filing lawsuits against multiple US states attempting to restrict or ban prediction market platforms.
Recent legal actions have targeted authorities in Ohio, Connecticut, Illinois, New York and Minnesota.
The dispute centers on whether prediction market contracts should be treated as federally regulated financial products or as forms of sports betting subject to state gambling laws.
The CFTC has consistently maintained that event contracts traded on federally regulated platforms fall within its exclusive jurisdiction.
Leadership Concerns Remain at the CFTC
Despite the regulator’s expanding role in crypto and prediction markets, the agency continues operating with only one commissioner.
The CFTC traditionally functions under a bipartisan five-member commission structure, but Michael Selig has served as the sole commissioner since December.
Lawmakers have repeatedly urged the White House to nominate additional commissioners to restore the agency’s full leadership capacity, particularly as the CFTC takes on broader responsibilities involving crypto regulation and prediction markets.
As of Thursday, President Donald Trump had not publicly announced any nominees to fill the remaining seats.
Polymarket Moves Toward More Advanced Contracts
The regulatory developments come as prediction market platforms continue expanding their product offerings.
On Wednesday, Polymarket filed a product self-certification letter with the CFTC seeking approval to list “combinatorial outcome contracts.”
The proposed product would allow users to combine multiple event outcomes into a single contract, potentially creating more complex prediction market products similar to multi-leg betting structures commonly used in sports wagering.
The filing highlights how prediction markets are evolving beyond simple yes-or-no contracts into increasingly sophisticated financial instruments.
Prediction Markets Gain Institutional Attention
The rapid growth of platforms such as Kalshi and Polymarket has attracted rising attention from regulators, sports leagues and institutional investors alike.
Advocates argue prediction markets provide valuable price discovery and crowd-sourced forecasting across sports, politics, economics and global events.
Critics, however, continue raising concerns about market manipulation, regulatory gaps and the blurred lines between financial speculation and gambling.
As adoption accelerates, the partnership between the CFTC and major sports leagues signals that prediction markets are becoming an increasingly important part of the broader digital finance ecosystem.
Comparison, examination, and analysis between investment houses
Leave your details, and an expert from our team will get back to you as soon as possible
