[Digital Today reporter Yoonseo Lee] The National Basketball Association (NBA) designated Kalshi and Polymarket as preferred prediction market exchanges and signed an information-sharing agreement with the Commodity Futures Trading Commission (CFTC) to strengthen the integrity of basketball-related markets.

Cointelegraph, a blockchain media outlet, reported on Oct. 26 that the NBA will provide the two platforms with official game data and apply safeguards to prevent insider trading.

Under the agreement, Kalshi and Polymarket will use data supplied by Sportradar, the NBA’s official data distribution partner, to settle trades in approved markets. The two platforms also secured the right to use NBA intellectual property in the United States and carry out related promotional activities.

The agreement also includes integrity protections. The NBA and team officials cannot trade NBA game event contracts and must cooperate with investigations of suspicious trades. CFTC Commissioner Michael Selig said the agreement will strengthen information sharing to respond to insider trading and fraud in prediction markets.

The NBA also expanded the scope of its existing agreement with DraftKings to include prediction markets. The NBA plans to announce additional cooperation with other operators in the coming weeks.

The move comes as legal disputes continue in the United States over sports prediction markets. The central issue is whether federal commodities regulation of sports prediction markets takes precedence over state gambling laws. In September, the 6th U.S. Circuit Court of Appeals ruled against Kalshi in an Ohio and Tennessee-related case, and the 9th U.S. Circuit Court of Appeals reached a similar conclusion. By contrast, the 3rd U.S. Circuit Court of Appeals allowed Kalshi to continue operating in New Jersey while an appeal proceeds.

Legal action by state governments is also continuing. Utah Attorney General Derek Brown filed a lawsuit against Kalshi on Oct. 20. Utah said Kalshi has enabled illegal betting in the state since 2024.

There is also a move to seek a ruling from the U.S. Supreme Court. Requests for review of the New Jersey dispute drew support from 39 states and Washington, D.C. The National Football League (NFL), which has not yet entered a commercial partnership with a prediction market exchange, also joined. The NFL said some sports event contracts are vulnerable to manipulation and could harm the fairness of games. The Supreme Court has not yet decided whether to hear the case.

The NBA is expanding cooperation with prediction market operators while building an information-sharing system with regulators. Major League Baseball (MLB) and the National Hockey League (NHL) have already signed similar agreements with the CFTC. Uncertainty remains over the business scope and legal status of sports prediction markets.

The NBA has partnered with Kalshi as a Preferred Prediction Market Exchange. Official NBA data to settle trades, stronger safeguards, and NBA branding on Kalshi. Fans come to Kalshi because open markets are a fairer way to trade basketball. Now, it’s Official. https://t.co/1ANtToovTn