Overview
On October 26, the NBA announced partnerships with Kalshi and Polymarket, making them the league's official prediction markets.[1] These are the first formal partnerships that the NBA has entered into with prediction markets.[2] The NBA's agreements permit Kalshi and Polymarket to use the NBA's "IP, marketing rights and promotional activations" and access NBA data.[3] However, this partnership comes with a regulatory twist: the NBA simultaneously announced that it has reached an agreement with the CFTC that allows information-sharing between the league and the regulator "ensuring that NBA-related prediction markets are subject to appropriate regulatory oversight and integrity protections."[4]
Previously, the NBA imposed restrictions on its affiliated sports books[5] following several high-profile betting scandals involving NBA players and coaches.[6] For example, the Department of Justice indicted NBA guard Malik Beasley in June 2026 for his alleged role in an illegal betting scheme, through which Beasley allegedly sought to pay off millions in gambling debts by ensuring his lenders won their wagers.[7] The restrictions imposed by the NBA on sports books prohibit bets that are susceptible to abuse, including "[u]nder bets on players expected to play fewer than 12 minutes per game…[and] single-event player markets—wagers that are placed on a player's single play and dependent on a negative outcome."[8]
The agreements with Kalshi and Polymarket demonstrate that the NBA is seeking to strike a balance between, on the one hand, promoting fan engagement and recognizing that sports books and prediction markets are a feature of the professional sports landscape and, on the other hand, ensuring that the integrity around event contracts remains intact.[9] The NBA's approach is consistent with that of the MLB and NHL, which similarly partnered with specific prediction markets while also signing information-sharing agreements with the CFTC to ensure the integrity of their sports.[10]
The NBA's posture signals a growing recognition that greater regulation of sports betting and prediction markets is necessary to prevent abuse and manipulation. Furthermore, as Democrats assume control of Congress, the likelihood of major sports betting and prediction market regulation increases. Look for an upcoming client alert that further explores the impact of the recent elections. Steptoe's Sports Integrity Team advises leagues, conferences, and teams on sports integrity issues across the sporting landscape.
[1] Press Release, NBA, NBA Establishes Integrity Framework and Com. P'ships for Prediction Markets (Oct. 26, 2026), https://www.nba.com/news/nba-establishes-integrity-framework-and-commercial-partnerships-for-prediction-markets.
[2] Mike Vorkunov, NBA Announces Partnership with Prediction Markets Kalshi, Polymarket, The Athletic (Oct. 26, 2026), https://www.nytimes.com/athletic/7723134/2026/10/26/nba-kalshi-polymarket-agreement-prediction-markets/.
[3] NBA Establishes Integrity Framework and Com. P'ships for Prediction Markets, supra note 1.
[4] Id.; Memorandum of Understanding Between the Commodity Futures Trading Comm'n and the Nat'l Basketball Ass'n.
[5] Kurt Helin, NBA Works with Sportsbook Partners to Remove Specific Wagers, Prop Bet Parlays on Games, NBC Sports (Oct. 16, 2026), https://www.nbcsports.com/nba/news/nba-works-with-sportsbook-partners-to-remove-specific-wagers-prop-bet-parlays-on-games.
[6] Id.
[7] Robby Kalland, Malik Beasley Indicted on Illegal Sports Gambling Charges Along with Fellow Ex-NBA Player Ed Davis, CBS Sports (June 29, 2026), https://www.cbssports.com/nba/news/malik-beasley-illegal-sports-gambling-indictment-ed-davis/.
[8] Mike Vorkunov, NBA, Sportsbooks to Restrict Bets on Single Plays, Other ‘Low-Likelihood, High-Payout' Wagers, The Athletic (Oct. 16, 2026), https://www.nytimes.com/athletic/7694070/2026/10/16/nba-gambling-policy-bets-rules-update/.
[9] See id.
[10] Davis Giangiulio, NBA Enters Prediction Markets with Kalshi, Polymarket Partnerships, CNBC (Oct. 26, 2026), https://www.cnbc.com/2026/10/26/nba-kalshi-polymarket-prediction-markets.html; Press Release, CFTC, CFTC and MLB Sign Groundbreaking MOU (Mar. 19, 2026), https://www.cftc.gov/PressRoom/PressReleases/9199-26; Press Release, CFTC, CFTC and National Hockey League Sign MOU Related to Integrity in Professional Hockey (May 21, 2026), https://www.cftc.gov/PressRoom/PressReleases/9235-26.
