CFTC, NHL sign MOU to curb insider trading in prediction markets

The U.S. Commodity Futures Trading Commission and the National Hockey League signed a memorandum of understanding Thursday to share information and coordinate responses to suspected insider trading, fraud and other improper conduct in prediction-market contracts tied to NHL outcomes.

The agreement, announced by CFTC Chair Michael Selig, allows the two organizations to exchange information and coordinate to “protect the integrity of both professional hockey and related event contracts” on prediction-market platforms. Selig described the arrangement as intended to protect users from “insider trading, fraud, and other abuse” as the agency asserts oversight of platforms including Kalshi and Polymarket.

The announcement noted Kalshi and Polymarket listed contracts tied to the Stanley Cup playoffs, which began in April. The NHL’s 2026-27 regular season is scheduled to start in September. The MOU lets the league and regulator monitor and respond to potential misconduct involving event-based contracts that refer to NHL results.

The CFTC has maintained that it holds “exclusive jurisdiction” over prediction markets and has filed legal actions against state authorities in Ohio, Connecticut, Illinois and New York. The commission also challenged Minnesota over what it described as the state’s “first outright ban” on such platforms. Selig has served as the agency’s only commissioner since December; the White House had not publicly announced nominations for additional commissioners as of Thursday.

Separately, Polymarket filed a product self-certification letter with CFTC Secretary Christopher Kirkpatrick seeking to list “combinatorial outcome contracts,” which would allow the platform to combine two or more underlying event contracts. The filing follows industry efforts to broaden the types of contracts available on prediction-market exchanges.

The MOU follows a similar agreement the CFTC signed with Major League Baseball in March. The CFTC said the NHL agreement formalizes channels for sharing information and coordinating responses to allegations of manipulation or improper access to nonpublic information tied to league events.

Prediction markets let users trade contracts that pay out based on the outcome of events. The CFTC’s agreements with sports leagues establish a framework for monitoring market activity, sharing relevant information and addressing possible misconduct.