Unions Call For CFTC Action Against Speculation and Mention Regulations to Safeguard Athletes

(AsiaGameHub) –   Player associations for the NFL, MLB, NBA, MLS, and NHL have called on the Commodity Futures Trading Commission (CFTC) to ban certain prediction markets. Specifically, the unions want the CFTC to block contracts tied to a “negative” outcome or any contract that can be manipulated by a single individual.

“This would include contracts based on what are known as ‘under bets’ or on whether an athlete is
injured or given a penalty,” the unions wrote in an official comment submitted to the CFTC.

“It would also include ‘mention contracts’, which depend on whether specific words or
phrases, such as ‘concussion,’ are spoken during live event broadcasts (this is just another way of
betting on a negative outcome).”

The unions argue that these types of markets expose athletes to abuse and harassment, and also put the integrity of professional sports at risk.

Shielding Players From Abuse

“Keeping our athletes and their families safe and secure is the top priority for our
organizations,” the player unions said in their joint statement.

The comment cited a New York Times article that found legalized sports betting has increased how often players receive abusive and threatening messages from unhappy bettors.

One survey found that 78% of professional baseball players said legal sports betting has changed the way fans treat them or their teammates.

For example, MLB players Lance McCullers Jr. (pictured above) and Liam Hendriks reported getting death threats last year.

Multiple NBA players have also spoken out against the regular abuse they get from angry bettors.

“The worst things you’re thinking of right now are actually worse than that,” said New York Knicks point guard Jalen Brunson.

Banning prop bets at prediction markets would help cut down on abuse, the player unions claim. People upset about losing money “do not tell the difference between state-regulated wagers and contracts offered on prediction markets. From their point of view, a bet is a bet no matter where it is placed.”

Safeguarding the Integrity of Sports

In addition to reducing abuse against athletes, the unions claim that limiting prop bets will protect the integrity of sports.

Last year saw multiple betting scandals across the NBA, MLS, and MLB, where players were accused of manipulating their performances for betting gains.

If the CFTC does not restrict the range of sports prediction markets offered on platforms like Kalshi and Polymarket, it will give “more room to those looking to manipulate sporting events,” the unions stated.

CFTC Receives a Flood of Comments

The CFTC opened a public comment period last month, asking for input on which contracts should be banned as “contrary to public interest.”

The comment period has now closed after attracting more than 1,500 submissions. Along with the player unions, the NBA also asked the CFTC to limit the types of markets that can be offered.

It said player prop markets “should be prohibited in the near term, while appropriate, sensible restrictions are developed to reduce risks to integrity.”

Additionally, it asked the CFTC to consult with sports leagues before allowing companies to self-certify new markets.

Representatives from the PGA Tour, ATP Tour, and MLB also submitted comments, similarly asking the agency to closely monitor markets that could be vulnerable to manipulation.

The PGA Tour and NBA also asked the CFTC to raise the minimum age for using sports prediction markets to 21, matching the legal sports betting age in most U.S. states.

The CFTC will now review all submitted comments, and Chairman Michael Selig has promised that the agency will create clear standards for prediction markets.