MLB and CFTC strike integrity pact as league taps Polymarket for prediction markets
Major League Baseball (MLB) has teamed up with the US Commodity Futures Trading Commission (CFTC) in a new effort to keep a close watch on the booming world of sports prediction markets, according to a release from the federal agency.
The arrangement is a formal memorandum of understanding that sets up how the league and the CFTC will work together. The two sides plan to monitor trading activity, exchange information, and look for any signs of manipulation tied to baseball-related event contracts. The CFTC says the goal is to “protect the integrity and resilience of prediction markets” while guarding against “fraud, manipulation, and other abuses.”
Commissioner Rob Manfred described the agreement as a necessary step as these markets grow in popularity. “The new agreements that we formed…are imperative steps,” he said, adding that “protecting the integrity of the game on the field is our top priority.”
CFTC Chairman Michael Selig echoed that sentiment, saying the partnership would “protect the integrity and resilience of prediction markets” and help guard against “fraud, manipulation, and other abuses.”
Polymarket deal adds commercial layer to CFTC and MLB partnership
Alongside the regulatory piece, MLB has also struck a commercial deal with Polymarket, naming it the league’s exclusive prediction market exchange partner. That arrangement gives the platform access to official league data along with branding rights.
Polymarket publicly welcomed the partnership, saying it was “honored” to be selected by MLB. Early promotional material points to a rollout tied to the 2026 season, including imagery featuring a base stamped with a “2026 Opening Day” logo. That timing suggests prediction markets will be part of the league’s broader Opening Day push and fan engagement plans.
The agreement is reportedly worth as much as $300 million over several years and includes promotion across MLB’s media platforms.
“Polymarket is about bringing fans closer to the moments that define sports,” said Shayne Coplan, founder and CEO of Polymarket in a press release. “By working collaboratively with Major League Baseball and regulators, we can create new ways for fans to engage with the game while protecting the integrity of the sport.”
A key part of the MLB-CFTC framework is deciding what kinds of markets are allowed. League officials say certain higher-risk options, like bets on individual pitches or umpire decisions, will be limited or blocked altogether. The idea is to lower the chances of insider influence while still allowing broader outcome-based markets.
This comes as the CFTC increases its focus on prediction markets, which it considers a form of derivatives trading. Recent guidance that we’ve previously highlighted indicates the agency is working toward clearer rules for sports-related event contracts, including requirements around monitoring and anti-manipulation safeguards.
This has sparked friction with state regulators and the traditional gaming industry, which argue these products look a lot like sports betting and should fall under state gambling laws. The American Gaming Association pushed back, saying that “state laws…govern sports betting in the US—not federal workarounds.”
The timing also follows heightened scrutiny around gambling risks in baseball. Investigations into alleged betting activity involving players have raised fresh concerns about insider information and game integrity.
Featured image: Mike Selig via X
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