MLB Signs Exclusive Polymarket Deal, ‘Integrity Framework’ Agreement With CFTC

Main League Baseball announced Thursday that it has named Polymarket as its unique official associate for prediction markets, following the lead of leagues just like the National Hockey League and Main League Soccer which have additionally signed offers with prediction market platforms.

On prime of that, MLB Commissioner Robert Manfred signed a memorandum of understanding (MOU) with the Commodity Futures Buying and selling Fee (CFTC), a transfer that builds on MLB’s 2024 letter to the company calling for stronger integrity protections within the prediction market trade.

The Polymarket partnership grants the platform and its brokers unique entry to MLB branding and logos, official league information by Sportradar, and publicity throughout MLB’s digital channels and occasions. Front Office Sports was first to report on the multi-year deal, simply forward of the official announcement.

Central to the deal is a shared integrity framework, beneath which each events will work to limit markets that would pose integrity dangers—equivalent to these involving particular person pitches, managerial choices, or umpire efficiency. Polymarket may even embed integrity controls into its U.S. rulebook, holding all its brokers to uniform requirements.

The MOU with the CFTC establishes a proper channel for confidential information-sharing between the 2 organizations, relating to the integrity {of professional} baseball and its associated prediction markets. Designated representatives will meet recurrently to watch and handle potential threats.

“The brand new agreements that we shaped with Polymarket and the CFTC are crucial steps in proactively managing the brand new and quickly rising prediction market house,” stated Commissioner Manfred, in an announcement. “Defending the integrity of the sport on the sphere is our prime precedence. By participating on this neighborhood, we’re in a position to work collectively to create clear boundaries with the objective of mitigating danger whereas offering fan engagement alternatives.”

Whereas Polymarket holds unique rights as MLB’s official change, the league intends to determine integrity relationships with all different prediction market platforms providing baseball contracts, requiring every to undertake applicable protections in their very own rulebooks. (Disclosure: Decrypt’s mum or dad firm Dastan operates prediction market platform Myriad.)

The announcement follows rising concern over insider buying and selling on prediction market platforms, notably with a well-timed Polymarket bet from an unidentified consumer on the ouster of former Venezuelan President Nicolás Maduro in January, simply hours earlier than he was apprehended by U.S. particular forces.

That case and others have prompted a current wave of proposed laws, together with this week’s Banning Occasion Buying and selling on Delicate Operations and Federal Capabilities Act, or BETS OFF Act, which might ban prediction markets based mostly on terrorism, assassinations, and struggle. It will additionally prohibit wagers on occasions with recognized outcomes, such because the Academy Awards or the Tremendous Bowl halftime present.

Platforms have been taking initiatives to self-regulate these issues, with Kalshi just lately disclosing its first insider trading enforcement actions—together with towards a since-fired video editor for YouTube star MrBeast—and Polymarket teaming with data giant Palantir to develop “surveillance fashions” for sports activities prediction markets.

“The MOU is a collaborative step in direction of selling the integrity and resilience of the prediction markets regarding skilled baseball. By way of this MOU, the CFTC is well-positioned so as to add extra instruments to guard these markets and its contributors from fraud, manipulation, and different abuses,” stated CFTC Chairman Michael Selig, in a statement.  “I thank MLB and Commissioner Rob Manfred for partnering with the CFTC and taking a number one position in defending the integrity of those rising markets.”