Amid a surge in postseason numbers, the top professional hockey league has agreed to coordinate oversight of popular prediction market betting with the U.S. Commodity Futures Trading Commission, entering into a new memorandum of understanding similar to one recently struck by Major League Baseball.
The NHL last year formalized its official prediction market partnership with Kalshi and Polymarket and agreed to share event contract information related to its games with regulators, according to a statement from the NHL on Thursday. Chairman Mike Selig said at an event last week that the CFTC has been pursuing similar arrangements with all professional sports leagues.
“This agreement is another step toward upholding the integrity of sports and protecting market participants in prediction markets from insider trading, fraud and other abuses,” he said of the NHL’s arrangement in a statement.
Selig emphasized nurturing the industry and defending his agency’s role as the industry’s sole regulator.
Prediction market betting has exploded in recent years, and with its popularity have come concerns that betting is being abused and encourages cheating. At a Senate Commerce Committee hearing this week, lawmakers criticized the dark side of the industry. Commission Chairman Ted Cruz said bad actors – including the athletes themselves – could “sow seeds of doubt in the minds of fans.”
“Integrity has always been critical to the NHL and is the foundation of the trust that fans and partners have in our game,” NHL Commissioner Gary Bettman said in a statement released by the CFTC. “Our agreement with the CFTC enhances the comprehensive integrity monitoring system in place and enhances our ability to identify, deter and address potential risks.”
According to the new memorandum of understanding, the league and regulators will “endeavour, upon request, to share information regarding the integrity of professional hockey and the event contract market related thereto or other matters deemed appropriate.”
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