NBA signs prediction market deals amid player gambling indictments

Sales for the NBA Top Shot NFT marketplace fell to $762,781 last month. That figure represents a 99.66 percent drop from the February 2021 peak of $226,350,843. The league announced new preferred prediction market deals with Kalshi and Polymarket on Monday. It also expanded its existing DraftKings contract to include prediction markets and signed a memorandum of understanding with the US CFTC.

The NBA moved to formalize these betting relationships while facing multiple legal issues. Jontay Porter pleaded guilty to conspiracy in 2024 for a gambling and manipulation scheme. Malik Beasley is reportedly negotiating a plea deal on similar charges. Former player Terry Rozier and coach Chauncey Billups face indictments for rigging prop bets and participating in rigged poker games.

Scott Kaufman-Ross, the NBA head of media distribution and partnerships, stated that protecting the integrity of the game is the top priority. The new framework allows prediction markets to use official league data and intellectual property. It sets limits on permissible markets and requires information sharing regarding suspicious trades and investigations.

These data sharing provisions address concerns about insider trading. Prediction markets have previously seen such activity in other sectors, including US military operations in Venezuela and political teleprompters. New York attorney general Letitia James is currently suing Kalshi alongside other state attorneys general. Senators are also investigating how DraftKings and other firms use AI to target gamblers likely to lose while restricting bets from those who win.