CFTC in Active Talks With Every Major US Sports League to Expand Prediction Market Oversight
CFTC Chairman Michael Selig confirmed at the FINRA conference that his agency is negotiating data-sharing agreements with all major professional sports leagues, following a March MOU with Major League Baseball.
Commodity Futures Trading Commission Chairman Michael Selig confirmed on May 12, 2026, that his agency is in active talks with every major professional sports league in the United States as it deepens oversight of sports-related prediction markets. Selig made the disclosure at the annual FINRA conference in Washington, D.C., where he also confirmed the CFTC has already filed suit against approximately five or six states over attempts to block federally regulated event contracts.
The CFTC signed its first formal data-sharing agreement with a professional sports organization in March 2026, entering into a memorandum of understanding with Major League Baseball. The arrangement allows the agency to access official game data and monitor for market manipulation tied to outcomes. Selig said the agency is now pursuing similar MOUs with all other major U.S. leagues to address insider trading risks from participants with access to nonpublic information such as injury status or lineup decisions.
Insider Trading and the Integrity Question
Selig raised the issue of sports prediction market integrity directly, citing a case policed by Kalshi involving a YouTube creator in which an employee allegedly traded ahead of market-moving information tied to content releases. The chairman described the exchanges themselves as the first line of defense, pointing to their know-your-customer and anti-money laundering processes. He outlined hypothetical scenarios involving team staff trading ahead of games using nonpublic injury data as the type of manipulation the agency intends to police as event contracts grow in volume and liquidity.
Regulatory Posture Under the Current Administration
Selig described sports prediction contracts and traditional casino betting as “different products, parallel regimes” and pledged the CFTC would continue filing suits against states that challenge its authority. The CFTC is also reviewing exchange-traded products and funds linked to prediction market strategies in coordination with the SEC.
The outreach to professional sports leagues signals that the CFTC views event contracts as firmly within its enforcement mandate, not as gaming products subject to state regulation. For users on platforms like Kalshi and Polymarket, the expanded federal framework may ultimately provide more regulatory clarity. Whether it satisfies states and tribes that see prediction markets as unregulated sports betting remains the central legal question of 2026.