NHL, CFTC team up with memorandum of understanding as sports-based prediction markets balloon

Prediction markets are skating out of the penalty box into the mainstream as the Commodity Futures Trading Commission strikes another agreement with a major sports league — this time, the National Hockey League.

On Thursday, the CFTC and the NHL signed a Memorandum of Understanding in an effort to coordinate and share information "to protect the integrity of both professional hockey and related event contracts."

"Integrity has always been and remains paramount to the NHL and fundamental to the trust our fans and partners place in our game," said NHL Commissioner Gary Bettman in the statement. "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."

The agreement marks the latest effort by the agency to build ties with professional sports leagues as prediction markets rapidly expand. In March, Major League Baseball and the CFTC said they signed an MoU aimed at figuring out how to maintain the integrity of the game and prediction markets. Prediction market platforms like Kalshi and Polymarket have surged in popularity in recent years, particularly after the 2024 U.S. presidential election cycle.

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The agency, under lone commissioner Chair Michael Selig, has taken on a distinct stance in policing prediction markets than his predecessor, former CFTC Chair Rostin Behnam. Under his chairmanship, the commission voted to propose rules restricting event contracts tied to gaming, war, terrorism, and assassination because they could be "contrary to the public interest." 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.

Selig has also repeatedly asserted that the agency has "exclusive jurisdiction" despite pushback from states that say platforms are violating local gaming and gambling laws, particularly related to sports-related bets.

So far, the CFTC has sued five states, including Wisconsin, Minnesota, Illinois, Arizona, Connecticut, and New York, in its fight to assert its oversight over prediction markets.