CFTC and NHL Sign Memorandum to Protect Prediction Market Integrity

The Commodity Futures Trading Commission and the National Hockey League signed a Memorandum of Understanding on Thursday to coordinate and share information "to protect the integrity of both professional hockey and related event contracts." The agreement represents the latest effort by the CFTC to build ties with professional sports leagues as prediction markets expand. NHL Commissioner Gary Bettman stated: "Integrity has always been and remains paramount to the NHL and fundamental to the trust our fans and partners place in our game. Our agreement with the CFTC enhances the comprehensive integrity monitoring systems already in place and strengthens our ability to identify, deter, and address potential risks."

Prior Sports League Agreements

The NHL MoU follows a similar agreement signed between Major League Baseball and the CFTC in March, which aimed at maintaining the integrity of the game and prediction markets. Prediction market platforms like Kalshi and Polymarket have expanded in recent years, particularly following the 2024 U.S. presidential election cycle.

Regulatory Policy Shift

The CFTC's approach to prediction markets has shifted under Chair Michael Selig compared to his predecessor, former Chair Rostin Behnam. Under Behnam's leadership, the commission voted to propose rules restricting event contracts tied to gaming, war, terrorism, and assassination, citing potential public interest concerns. That rulemaking was scrapped earlier this year. Under Selig, the CFTC released an advanced notice of proposed rulemaking on how exchanges should approach listing prediction market contracts.

CFTC Jurisdiction and State Litigation

Selig has asserted that the CFTC holds "exclusive jurisdiction" over prediction markets, despite pushback from states claiming platforms violate local gaming and gambling laws, particularly related to sports-related bets. The CFTC has sued five states—Wisconsin, Minnesota, Illinois, Arizona, Connecticut, and New York—in its effort to assert oversight over prediction markets.