May 4, 2025, 04:00h.
NBA Warns CFTC: Enlarging Prediction Markets May Jeopardize Basketball's Integrity
Last updated on: May 3, 2025, 10:26h.
Todd Shriber @etfgodfatherFinancialBetting BusinessMergers and Acquisitions NBA Warns Regulator: Rapid Prediction Market Expansion May Erode Game Integrity* League Worried About Increased Offerings From Prediction Market Operators Like Kalshi And PredictIt*
The NBA is sounding the alarm on the unregulated expansion of sports prediction markets, arguing that the growing list of wagers on offer could undermine league integrity.
In a recent letter to CFTC Acting Director Caroline Pham, NBA Vice President and Assistant General Counsel Alexandra Roth voiced concern about prediction market operators' dramatic shift from season-long wagers to single-game and highly specific bets. Roth asserts that these moves have been made without the approval of regulators, with player propositions and other questionable wagers looming on the horizon.
According to Roth, this rapid growth in sports prediction markets is occurring in a vacuum bereft of the necessary, sport-specific regulatory framework designed to safeguard game integrity.
Drawing attention to the expanding menus of sports-related offerings by prediction market operators, Roth hinted at a potential expansion into player performance statistics, officiating decisions, league rules, and even player injuries. While Kalshi, one of the market leaders in the yes/no derivatives space, doesn't currently feature player propositions, it does have markets on several NBA playoff series, conference champions, and upcoming playoff games.
NBA Taking a Firm Stance Following Porter Scandal
The NBA has embraced regulated sports wagering and partnerships with gaming companies since the 2018 Supreme Court's ruling on the Professional and Amateur Sports Protection Act (PASPA). However, the Porter controversy last year — in which former Toronto Raptors player Jontay Porter was banned for life for altering his performance and accepting money from bettors — may have sparked the league's increased scrutiny of basketball-related offerings on prediction markets.
Following the Porter scandal, the NBA worked with its sportsbook partners to bar "under" props on the league's lowest-paid athletes. Current league policy also prohibits players, league, and team personnel from betting on anything related to the NBA, G-League, and WNBA contests.
Despite these measures, Roth expressed concerns about the lax regulatory environment surrounding the proliferation of NBA bets on prediction markets.
"The rapid expansion of sports prediction markets has occurred without the kind of robust, sports-specific regulatory framework that aims to protect the integrity of the games being played," Roth wrote.
Roth astutely observes that traditional sportsbook operators must clear state regulatory hurdles to add new wagers, whereas platforms like Kalshi operate under federal regulation.
Additional NBA Concerns
In reaffirming its support for regulated, secure sports betting, Roth also emphasized the importance of dedicated oversight staff at the CFTC, given the commission's current lack of sports betting experts compared to state gaming boards. This suggests the CFTC may need to bolster its sports-focused manpower as prediction markets continue to grow.
"If the CFTC decides to allow the continuing operation of sports event contracts, we encourage it to close this gap and adopt a comprehensive regulatory and oversight framework akin to those governing state sports betting markets, and to impose stringent constraints on the continued expansion of these markets into increasingly esoteric and narrow propositions," Roth concluded.
- The NBA has voiced concerns about the rapid expansion of sports prediction markets, arguing that the growing list of NBA-related wagers could potentially erode the game's integrity.
- In the letter to CFTC Acting Director Caroline Pham, NBA Vice President and Assistant General Counsel Alexandra Roth pointed out the lack of a sport-specific regulatory framework designed to safeguard game integrity in these markets.
- According to Roth, a robust, sports-specific regulatory framework is particularly crucial for prediction markets offering wagers on player performance statistics, officiating decisions, league rules, and even player injuries.
