The Commodity Futures Trading Commission and the NBA signed a memorandum of understanding on October 26 covering the integrity of basketball-related contracts on prediction markets. The agreement commits both sides to regular contact and to sharing information about suspicious activity.
The deal covers prediction markets specifically, where contracts pay out on the result of a game or a statistic, and not state-licensed sportsbooks. The CFTC said its focus is trading on confidential information and fraud, which it has named as enforcement priorities.
The NBA is the third major US league to sign such an agreement, following MLB and the NHL. The timing follows a season of betting-related investigations in basketball and a wave of state actions against prediction market operators.
Source: Gambling Industry News. Summary written by Playfield Review.