Player Unions Ask CFTC to Ban Risky Prediction‑Market Contracts

Player associations for the NFL, MLB, NBA, NHL and MLS filed a joint comment with the Commodity Futures Trading Commission on April 30 asking the agency to ban two types of prediction‑market contracts they say can be manipulated and harm players.

The filing, submitted through the lobbying firm Elevate Government Affairs on the final day of the CFTC’s 45‑day rulemaking comment period, targets ‘negative outcome’ contracts that pay if a player is injured, penalized or otherwise has an adverse event, and ‘mention’ contracts that pay if a specific word is spoken during a live broadcast.

The unions argued those contracts can be moved by a single individual and expose players and family members to harassment from disgruntled bettors. The filing cited a November 2025 survey in which 78% of professional baseball players said legalized sports betting had changed how fans treat them and added that bettors do not distinguish between state‑regulated wagers and prediction‑market contracts.

Leagues have taken commercial steps into the prediction‑market space while unions press for restrictions. MLB has an exclusive multi‑year partnership with Polymarket and has signed a memorandum of understanding with the CFTC on data sharing. The NHL signed multi‑year data deals last year with both Polymarket and Kalshi. The MLS and UFC have marketing partnerships with prediction‑market operators. The NBA has not signed a similar leaguewide partnership and submitted a separate letter calling for a near‑term prohibition on player prop markets and for raising the minimum trading age to 21.

Other sports organizations, including the PGA Tour and the ATP Tour, also filed comments asking the CFTC to monitor markets they view as vulnerable to manipulation.

CFTC Chair Michael Selig responded publicly to criticism of the agency’s approach and wrote that the CFTC holds ‘exclusive authority over prediction markets’ under the Commodity Exchange Act. He warned that overly restrictive rules could push trading offshore and has said exchanges should act as self‑regulatory organizations responsible for policing their markets.

Traders and regulators pointed to past cases involving betting integrity. In April 2024, a professional basketball player was banned for life after sharing confidential information with bettors. In October 2025, an NBA player was arrested in a federal investigation into alleged prop‑bet manipulation, with prosecutors expected to file additional charges by mid‑May of the following year.

The CFTC closed its public comment period on April 30 with more than 1,500 submissions on prediction‑market rulemaking. Regulators now face competing pressures from player representatives seeking bans on certain contracts, leagues negotiating commercial relationships with market operators, and the agency weighing how to regulate markets it views as within its authority while limiting migration of activity to unregulated offshore venues.

The unions’ filing included the statement: ‘Individuals targeting our members do not distinguish between state‑regulated wagers and contracts offered on prediction markets.’ The document urged the CFTC to prohibit markets that can be moved by a single person or that allow bettors to profit from player harm.