Player unions for the NFL, MLB, NBA, MLS, and NHL have called on the Commodity Futures Trading Commission (CFTC) to prohibit certain prediction markets. Specifically, the unions want the CFTC to block contracts based on a “negative” outcome or ones that can be manipulated by a single individual.
“This would include contracts based on so-called ‘under bets’ or on whether an athlete is
injured or penalized,” wrote the unions in a comment to the CFTC.
“It would also include ‘mention contracts‘, dependent on whether specific words or
phrases, such as ‘concussion,’ are spoken during live event broadcasts (which is just another way of
betting on a negative outcome).”
The unions argue that these kinds of markets open up athletes to abuse and harassment, as well as risk the integrity of professional sports.
Protecting Players From Abuse
“Maintaining the safety and security of our athletes and their families is of paramount importance to our
organizations,” said the joint statement from the player unions.
The comment referenced a New York Times article that declared legalized sports betting has increased the instances of players receiving abusive and threatening messages from disgruntled bettors.
A survey revealed 78% of professional baseball players said legal sports betting has changed how fans treat them or their teammates.
For example, MLB players Lance McCullers Jr. (pictured above) and Liam Hendriks reported receiving death threats last year.
Several NBA players have also spoken out against the abuse they routinely receive from angry bettors.
“The worst things you’re thinking of, it’s worse than that,” said New York Knicks point guard Jalen Brunson.
Prohibiting prop bets at prediction markets would help reduce abuse, the player unions claim. Individuals angered at losing money “do not distinguish between state-regulated wagers and contracts offered on prediction markets. From their point of view, a bet is a bet regardless of where it is placed.”
Protecting Integrity of Sports
In addition to reducing the abuse of athletes, the unions claim that limiting prop bets would protect sporting integrity.
There were several betting scandals last year in the NBA, MLS, and MLB, where players are alleged to have manipulated their performances for betting purposes.
If the CFTC does not limit the range of sports prediction markets offered on platforms such as Kalshi and Polymarket, it will provide “more latitude to those seeking to manipulate sporting events,” the unions stated.
CFTC Inundated With Comments
The CFTC opened a public forum last month, inviting comments on which contracts should be prohibited as “contrary to public interest.”
The comment period has now ended after attracting over 1,500 submissions. In addition to the player unions, the NBA also requested that the CFTC limit the kinds of markets made available.
It said player prop markets “should be prohibited in the near term, pending the development of appropriate and sensible restrictions to mitigate integrity risks.”
Additionally, it asked the CFTC to consult with sports leagues before allowing companies to self-certify new markets.
Representatives from the PGA Tour, ATP Tour, and MLB also made submissions, similarly requesting that the agency closely monitor markets that could be susceptible to manipulation.
The PGA Tour and NBA also asked the CFTC to raise the age limit for using sports prediction markets to 21, in line with the legal sports betting age in most states.
The CFTC will now review the comments, and Chairman Michael Selig has promised that the agency will establish clear standards for prediction markets.
