The National Basketball Association (NBA) has secured a prediction markets agreement with the U.S. derivatives regulator, the Commodity Futures Trading Commission (CFTC), and partnered with leading firms Kalshi and Polymarket. This formally links professional basketball into the online sports betting movement, unlike the National Football League (NFL), which has rejected such an arrangement.

The NBA, following Major League Baseball and the National Hockey League, established a data-sharing memorandum of understanding with the CFTC, which oversees event contracts. The NBA's deal, announced Monday, includes constraints to maintain wagering integrity and designates Kalshi and Polymarket as "preferred exchanges." NBA's head of media distribution and partnerships, Scott Kaufman-Ross, stated that these partnerships are crucial for establishing a framework with appropriate safeguards.

Meanwhile, prediction markets face a nationwide legal battle with several state governments, with the NFL siding with the states, arguing that CFTC's federal oversight is lax and understaffed. CFTC Chairman Mike Selig, however, called the NBA's decision "a responsible step toward protecting sports integrity and market participants."