The Commodity Futures Trading Commission has inked a memorandum of understanding with the National Hockey League covering prediction markets. The deal follows a similar MOU the regulator signed with Major League Baseball in March. At the same time, the CFTC is pressing ahead with lawsuits against state-level authorities over prediction market platforms that involve sports betting.
What the NHL agreement includes
The MOU between the CFTC and the NHL is a cooperative arrangement. It sets out how the two sides will share information and coordinate on matters related to prediction markets — contracts that let people wager on outcomes like game scores or player stats. The agreement doesn't change any existing laws, but it formalizes a working relationship between the federal regulator and the league.
Neither the CFTC nor the NHL has released the full text of the MOU, so the specific terms aren't public yet. What is clear is that the commission sees these partnerships as a way to keep tabs on an emerging market that sits somewhere between sports betting and derivatives trading.
A pattern of sports league partnerships
March's deal with Major League Baseball was the first of its kind for the CFTC. That MOU also focused on information sharing and regulatory coordination. The NHL agreement shows the commission is widening its reach across professional sports.
The timing matters. Prediction markets have grown rapidly in the U.S., fueled by online platforms that let users trade contracts tied to everything from election results to baseball games. Federal regulators have been trying to figure out where those contracts fall under the Commodity Exchange Act, and sports leagues have their own interests in protecting brand integrity and preventing manipulation.
Ongoing legal battles with states
While the CFTC is shaking hands with sports leagues, it's also fighting in court. The commission has filed multiple lawsuits against state-level authorities over prediction market platforms that offer sports-related contracts. Those cases argue that the platforms are operating outside federal commodities law.
The state regulators have pushed back, saying the platforms fall under state gambling laws and don't need CFTC approval. The legal fight is unresolved, and the outcomes could determine how much control the federal government has over prediction markets going forward.
The CFTC's next hearing in one of those cases is set for later this spring. Until a judge rules, the agency will keep signing MOUs on one side and filing suits on the other.
