The unions representing top athletes in the NBA, NFL, MLB, NHL, and MLS are urging the Commodity Futures Trading Commission (CFTC) to stop prediction market platforms from allowing users to bet on a player’s underperformance or injury. According to the Sports Business Journal, the unions believe “appropriate regulations” are necessary to protect athletes and their families from harmful behavior.
These unions responded to the CFTC’s request for comment regarding the regulation of prediction markets run by platforms like Kalshi and Polymarket. They not only seek a ban on ‘under’ bets but also want restrictions on wagering on specific words or phrases during broadcasts, such as “concussion,” as this is akin to betting on a negative outcome.
The letter also highlights an incident involving Jontay Porter, who once played for the Toronto Raptors. Porter admitted to conspiracy to commit wire fraud related to betting by reducing his game participation, as stated by the NBA. Additionally, some NBA players were charged with misusing private information to gain financial benefits.
Furthermore, the unions demand prohibiting the unauthorized use of a player’s health data or performance metrics. Separately, the NBA suggested restricting prediction market participation to individuals over 21, while platforms like Kalshi and Polymarket allow users 18 and older.
As these prediction markets gain traction, the CFTC has resisted states’ efforts to regulate them, going as far as filing lawsuits against states such as Arizona, Connecticut, Illinois, New York, and Wisconsin for attempting to infringe on its authority over these betting markets.