NBA gambling response to scandals brings new prediction-market partnerships
New market agreements
The NBA announced preferred prediction-market arrangements with Kalshi and Polymarket on Monday. It also expanded its DraftKings agreement to include prediction markets and said further expansions with other companies would follow.
Under the deals, the companies may use official NBA data and intellectual property. The league said the framework includes limits on permitted markets and sharing information about suspicious trading and investigations.
Integrity amid gambling cases
The league’s new framework arrives amid several gambling-related cases involving NBA figures. Jontay Porter pleaded guilty in 2024 to conspiracy tied to a gambling and manipulation scheme, while Malik Beasley is reportedly negotiating a plea deal over similar charges.
Scrutiny beyond the league
Prediction markets have faced reported insider activity involving subjects including US military activity in Venezuela and Donald Trump’s teleprompter. The NBA’s agreement with the CFTC sets out a process for managing its relationships with these markets.
New York Attorney General Letitia James is among state attorneys general suing Kalshi and other prediction-market companies. Senators are also investigating reports that DraftKings and other operators use AI to target gamblers more likely to lose and restrict bets from winners.
Key points
- The NBA reached prediction-market deals with Kalshi and Polymarket and expanded its DraftKings agreement.
- The league’s framework allows official data and intellectual property, with limits on markets and information-sharing provisions.
- Gambling-related cases involving Jontay Porter, Malik Beasley, Terry Rozier and Chauncey Billups have raised integrity concerns.
- Prediction markets face state lawsuits and scrutiny over alleged insider activity and gambling practices.