TL;DR:
The CFTC signed a memorandum of understanding with Major League Baseball, marking the first information-sharing agreement between the U.S. federal derivatives regulator and a professional sports organization. Its goal is to strengthen user protection against fraud, manipulation and other abuses in prediction markets tied to professional baseball.
CFTC Chair Mike Selig described the memorandum as a step forward in market integrity and resilience. Simultaneously, Polymarket was designated by MLB as its exclusive prediction markets partner, gaining access to official logos, real-time data and brand presence at league events. The agreement also includes an integrity framework that encompasses the restriction of contracts that pose a risk to the game, such as markets on individual pitches, manager decisions or umpire performance.
Prediction markets, led by platforms such as Polymarket and Kalshi, have broken into sports, politics and popular culture over the past few years, sparking a major regulatory dispute between federal and state authorities. Several state gaming regulators argue that their jurisdiction also covers the activity of these markets, while Selig contends that federal authority prevails over state laws on sports betting.
MLB Commissioner Rob Manfred publicly backed the CFTC’s position. In statements to ESPN, he noted that a federal regulatory framework significantly simplifies the league’s operations compared to the fragmented state model that governs traditional sports betting.
Concerns over sports integrity are growing. In 2025, two Cleveland Guardians pitchers were charged with accepting bribes to manipulate the outcomes of specific pitches. MLB had already seen Major League Soccer partner with Polymarket earlier this year, while the NHL was the first major league to announce an alliance with a prediction markets platform, back in October of last year.
