CFTC Is Negotiating Data-Sharing Deals With All Major US Sports Leagues to Oversee Prediction Markets

The U.S. Commodity Futures Trading Commission is in active negotiations with every major professional sports league in the country about data-sharing arrangements designed to strengthen oversight of sports prediction markets, CFTC Chairman Michael Selig confirmed on May 12, 2026. Selig made the announcement at the annual FINRA conference in Washington, D.C., following the CFTC’s first such agreement, an MOU with Major League Baseball signed in March 2026 that gives the agency access to official game data for market monitoring purposes.

The driving concern behind the league outreach is insider trading. Selig raised the scenario of team staff, coaches, or medical personnel trading ahead of games using nonpublic injury information — effectively front-running event contract markets the way financial insiders might front-run earnings announcements. The MLB agreement gives the CFTC a template for what expanded cooperation could look like with the NFL, NBA, NHL, and other leagues.

Why This Matters for Sports Bettors

Prediction markets have exploded in popularity among sports fans, offering a way to trade on game outcomes in states where traditional sports betting is not yet licensed. But the rapid growth of these platforms has raised integrity questions that the CFTC is now moving to address systematically. The agency has already sued roughly five or six states over their attempts to block federally regulated event contracts, arguing that sports prediction contracts are federally regulated derivatives, not gambling products subject to state gaming law.

Selig also noted the CFTC and the SEC are jointly reviewing exchange-traded products and funds linked to prediction market strategies, signaling that these platforms are increasingly viewed as part of the mainstream financial markets infrastructure rather than niche gambling alternatives.

What This Means for the State-versus-Federal Battle

The CFTC’s active posture — signing data agreements with leagues, suing states, and coordinating with the SEC — makes clear that the agency intends to be the primary regulator for event contracts, full stop. Minnesota’s legislature just passed the first explicit prediction market ban in the US, and New Mexico tribes have filed suit over similar concerns about tribal gaming sovereignty. Those challenges face an uphill battle if federal courts agree with the CFTC’s jurisdiction argument. For bettors using platforms like DraftKings prediction markets or considering Sporttrade, understanding which regulatory framework applies in your state remains essential before investing in event contract trading.