NBA Prediction Markets Pact: CFTC Signs Non-Binding MOU as League Picks Kalshi and Polymarket

The US Commodity Futures Trading Commission (CFTC) and the National Basketball Association (NBA) announced a memorandum of understanding on 26 October 2026 to protect the integrity of basketball in NBA prediction markets, and the league named Kalshi and Polymarket its preferred exchanges the same day.

The week also brought a security incident at Polymarket and a disclosure from an NFL player about how the league treats prediction-market investments. Both are covered below.

What the CFTC–NBA memorandum covers

The memorandum commits the CFTC and the NBA to share information and communicate regularly on integrity issues in prediction markets. CFTC Chairman Michael Selig said the NBA "joins the MLB and NHL" in taking this step, according to the agency's release. Yahoo Sports, citing the CFTC, reports that Major League Baseball and the National Hockey League signed similar pacts earlier this year.

The document is not legally binding. iGaming Business, which quoted the five-page text, reports that information moves at each party's "sole discretion". The memorandum itself is an information-sharing channel. Limits on which markets can be listed sit in the NBA's separate commercial agreements with the exchanges.

The NBA's deals with Kalshi and Polymarket

The NBA designated Kalshi and Polymarket as its "Preferred Prediction Market Exchanges". According to the league's announcement, the agreements:

• limit which markets are permitted;
• bar league and team personnel from trading NBA event contracts;
• require the platforms to share information on suspicious trading;
• give both exchanges NBA intellectual property, US marketing rights and official Sportradar data.

The NBA also widened its existing DraftKings agreement to cover prediction markets and nationwide promotion. It said it plans to expand deals with other betting partners "in the coming weeks".

The league's move comes as states push back on event contracts. Utah has filed criminal charges against Kalshi and its co-founders, and Ohio has told its licensees to cut ties with prediction markets. Kalshi has also sued Louisiana officials to protect its sports contracts. Charges are allegations, and the defendants are presumed innocent.

Polymarket loses $2.73 million to a compromised script

On Thursday 29 October, a compromised third-party script drained about $2.73 million from 737 Polymarket accounts, according to blockchain analytics firm Bitquery. Polymarket's own relayer sent the withdrawals, and Bitquery says no smart contract was broken.

Bitquery shows the relayer paused from about 18:10 to 18:52 UTC. Polymarket resumed trading around 3pm ET after pausing for about an hour, according to Fast Company and Yahoo News. The company said one of its third-party providers was compromised and that it had referred the matter to law enforcement. It said "Anyone who has been impacted will be made whole." SecurityWeek reports that researchers tied the malicious code to UK-based DebugBear.

Bitquery says a similar vendor-script attack hit Polymarket in June, when about 11 wallets lost $2.94 million and the platform promised full refunds. Gamingo's earlier report covers the trading restart after the breach.

Barkley sells Polymarket stake under NFL rules

Philadelphia Eagles running back Saquon Barkley told Front Office Sports on 28 October that the NFL forced him to divest his equity stake in Polymarket. NFL players may not invest in or endorse gambling or prediction-market companies. "I was in it before, but no bueno," he said. The Associated Press gave the same account.

The NFL confirmed to the outlet that it prohibits investing in and promoting sportsbooks and prediction markets, but did not comment on Barkley's case. Polymarket declined to comment. A September 2025 profile had listed Polymarket among Barkley's investments, so the sale came after that date.

The NFL's stance differs from other leagues. It has no prediction-market partner, barred prediction-market Super Bowl ads last year, and asked the Supreme Court to hear a sports-event-contract case. It says regulation should be handled at state level for now.

The MLB and James figures are Front Office Sports reporting. Compare the state-level approach in North Carolina's tightened ethics rules, which also address how officials interact with prediction markets.

Status reviewed on 31 October 2026. Figures come from the CFTC and NBA releases, Bitquery's incident analysis and Front Office Sports reporting. More regulation news and North America coverage.