The NBA’s response to gambling scandals is to add more gambling partnerships
From the bright minds that brought you FTX Arena and NBA Top Shot NFT maketplace (where sales last month dropped to $762,781, which is a 99.66 percent decrease compared to the February 2021 peak of $226,350,843), the NBA announced Monday that it has new "preferred" prediction market deals for Kalshi and Polymarket, as well as a memorandum of understanding with the US CFTC about how to manage the relationships. It…
Key points
- The NBA announced preferred prediction market deals with Kalshi and Polymarket, plus an expanded DraftKings deal covering prediction markets.
- The league also signed a memorandum of understanding with the US CFTC on managing these relationships.
- The announcement comes as the NBA faces gambling-related scandals involving Jontay Porter, Malik Beasley, Terry Rozier and Chauncey Billups.
The NBA announced Monday new "preferred" prediction market deals with Kalshi and Polymarket, along with a memorandum of understanding with the US CFTC on how to manage those relationships. The league also said its DraftKings deal is being expanded to include prediction markets, with more expansions to be announced with other partners soon.
The announcement comes as the league deals with gambling-related scandals. Jontay Porter pleaded guilty to conspiracy over a gambling and manipulation scheme in 2024, Malik Beasley is reportedly negotiating a plea deal on similar charges, and former player Terry Rozier and coach Chauncey Billups are under indictment over allegedly rigging prop bets and taking part in rigged poker games, respectively.
How the deals work
Under the arrangements, prediction markets can use official league data and intellectual property. The partners also promise limits on "permissible markets" and will share information on suspicious trades and investigations.
NBA Head of Media Distribution & Partnerships Scott Kaufman-Ross said "Protecting the integrity of the game is our top priority" as the league set up its integrity framework for the Kalshi and Polymarket deal.
Protecting the integrity of the game is our top priority
— Scott Kaufman-Ross
Scrutiny of prediction markets
Prediction markets have already drawn insider trading activity, including around US military activity in Venezuela and Trump's teleprompter. New York attorney general Letitia James is among many state attorneys general suing Kalshi and others.
Senators are also investigating reports that DraftKings and other companies use AI to target gamblers more likely to lose while restricting bets from those who win.
