The Commodity Futures Trading Commission (CFTC) and the National Hockey League (NHL) have signed a Memorandum of Understanding to coordinate and share information aimed at protecting the integrity of professional hockey and related event contracts. According to reports from The Block, this agreement represents the latest effort by the CFTC to build ties with professional sports leagues as prediction markets rapidly expand. NHL Commissioner Gary Bettman emphasized that integrity remains paramount to the league and fundamental to the trust fans and partners place in the game, stating that the CFTC agreement enhances comprehensive integrity monitoring systems and strengthens the ability to identify, deter, and address potential risks. CFTC Chairman Michael Selig stated that the agreement is a step toward safeguarding sports integrity and protecting market participants from insider trading, reflecting the growing popularity of sports betting and prediction markets which has raised concerns about potential manipulation and match-fixing.
The NHL-CFTC partnership follows a similar March agreement between Major League Baseball and the CFTC aimed at maintaining integrity of the game and prediction markets. As reported by The Block, prediction market platforms like Kalshi and Polymarket have surged in popularity in recent years, particularly after the 2024 U.S. presidential election cycle. The CFTC, under Chair Michael Selig, has taken a distinct stance in policing prediction markets compared to his predecessor, former CFTC Chair Rostin Behnam, who had proposed restrictive rules on event contracts tied to gaming, war, terrorism, and assassination that were later scrapped. The NHL became the first major U.S. sports league to formally partner with prediction market platforms in October 2025, with Kalshi recording $1.3 billion in trading volume on NHL-related markets over the preceding twelve months leading up to May 2026. Polymarket has secured separate agreements with Major League Baseball, Major League Soccer, and the UFC, demonstrating the expanding regulatory cooperation across professional sports leagues.
Under Selig's leadership, the CFTC has asserted exclusive jurisdiction over prediction markets despite pushback from states claiming platforms violate local gaming and gambling laws, particularly regarding sports-based event contracts. According to The Block, the agency has sued five states including Wisconsin, Minnesota, Illinois, Arizona, Connecticut, and New York in its fight to assert oversight over prediction markets. The CFTC has filed legal actions against state authorities in multiple jurisdictions to prevent interference with CFTC-regulated exchanges, with Arizona being the most recent example where the CFTC won a preliminary injunction stopping the state from pursuing criminal charges against Kalshi. Legal experts note the potential for a circuit split, which could lead to a Supreme Court decision on the matter, as the core dispute hinges on whether event contracts are financial derivatives or sports betting products. The Third Circuit has ruled that New Jersey cannot enforce gambling laws on prediction markets, adding complexity to the jurisdictional battle.
The partnership reflects the growing popularity of sports betting and prediction markets, which has raised concerns about potential manipulation and match-fixing. Polymarket has secured separate agreements with Major League Baseball, Major League Soccer, and the UFC, demonstrating the expanding regulatory cooperation across professional sports leagues. Polymarket has also filed a product self-certification letter with the CFTC to introduce parlay contracts to its platform, allowing traders to combine multiple event outcomes into single bets. These combinatorial outcome contracts target the sports betting segment which accounts for 63% of the platform's trading volume, with the feature expected to launch on May 21 aligning with the broader growth of legal sports betting in the United States. This expansion occurs as Americans wagered a record $166.94 billion in legal sports betting in 2025, highlighting the significant market opportunity driving regulatory cooperation.
