Overview
- Commissioner Rob Manfred said owners were briefed on possible partnerships with Polymarket and Kalshi, noting these markets differ from state-regulated sportsbooks.
- MLB maintains a ban on player participation in such markets, reinforced by a league memo last season that framed baseball-related event contracts as violations of betting policies.
- League officials pointed to data-sharing benefits, citing how existing gambling partnerships helped flag irregular patterns tied to the Cleveland Guardians case now in federal court.
- Regulators signaled heightened scrutiny, with CFTC Chair Michael Selig withdrawing a 2024 prohibition proposal, directing staff to draft event‑contract rules, and coordinating with the SEC after Chair Paul Atkins said some products may qualify as securities.
- Pressure is rising from lawmakers and courts, as 23 senators urged the CFTC to avoid intervening in state lawsuits and to restrict certain contracts, while SDNY’s Jay Clayton said he expects fraud prosecutions related to prediction‑market trading.