Overview
- The NHL joins the MLB as a sports league that has established a data-sharing agreement with the CFTC.
- This memorandum of understanding (MOU) focuses on exchanging information to uphold the integrity of betting on hockey events.
- Issues surrounding prediction market integrity have gained attention this year due to allegations of insider trading across various platforms.
The National Hockey League has become the latest professional sports league to collaborate with the Commodity Futures Trading Commission (CFTC) to enhance the integrity of prediction markets.
On Thursday, both organizations announced the signing of a memorandum of understanding (MOU) aimed at ensuring “fair and transparent prediction markets.”
CFTC Chairman Michael Selig expressed his pride in the partnership, stating, “I’m proud the CFTC and NHL have officially signed an MOU, furthering the agency’s commitment to improve data sharing between professional sports leagues and the Commission.”
He further noted, “This agreement is another step toward safeguarding the integrity of sports and protecting market participants in prediction markets from insider trading, fraud, and other abuses.”
This MOU, similar to the agreement made in March with Major League Baseball, facilitates information sharing, particularly concerning hockey-related event contracts, through designated representatives.
NHL Commissioner Gary Bettman remarked, “Our agreement with the CFTC enhances the comprehensive integrity monitoring systems already in place and strengthens our ability to identify, deter, and address potential risks.”
He added, “This MOU reflects a shared commitment to transparency, oversight, and protecting the integrity of the game.”
Last October, the NHL made history by becoming the first major sports league to license its trademarks to prediction market platforms Kalshi and Polymarket.
The topic of prediction market integrity has been under scrutiny this year, especially following concerns about insider trading in military action markets. Recently, accounts that profited over $2.4 million with a 98% success rate in Iran War markets have raised eyebrows.
This scrutiny follows the arrest of a U.S. special forces member who allegedly used inside information to gain around $400,000 from the capture of Venezuelan leader Nicolás Maduro.
In March, the CFTC—recognized as the primary regulator for the emerging prediction market sector—issued guidance related to event market regulations and sought public input on potential rule changes.
In response to increasing scrutiny, prediction market platforms like Kalshi and Polymarket have introduced their own measures to combat insider trading.
Additionally, Polymarket is collaborating with Palantir, a publicly traded analytics and defense firm founded by Peter Thiel, to establish surveillance systems focused on maintaining integrity in sports event markets.