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The NBA’s response to gambling scandals is to add more gambling partnerships

Policy2 min read

The NBA is making new deals with prediction market companies Kalshi and Polymarket, even though it is dealing with several gambling scandals. Prediction markets are sites where people bet on what they think will happen in the future.

The NBA signs new betting deals

The NBA announced new "preferred" deals with Kalshi and Polymarket. It also agreed to a memorandum of understanding, which is a written agreement about how to work together, with the US CFTC, the government agency that watches over these markets. The league also expanded its deal with DraftKings to include prediction markets, and it says more deals will come soon.

Key facts

  • Sales of the NBA Top Shot NFT marketplace fell to $762,781 last month. That is a 99.66 percent drop from the February 2021 peak of $226,350,843.
  • Jontay Porter pleaded guilty to conspiracy in a gambling and manipulation scheme in 2024.
  • Malik Beasley is reportedly negotiating a plea deal on similar charges.
  • Former player Terry Rozier is under indictment for allegedly rigging prop bets, which are bets on specific events inside a game.
  • Coach Chauncey Billups is under indictment for allegedly taking part in rigged poker games.

Why this is a big deal

Prediction markets let people bet on real-world events. Some of these markets have already seen insider trading, where people use secret information to make money. Many US states are suing Kalshi and other companies, and senators are looking into how companies like DraftKings use AI to target people who are likely to lose money.

Why it matters

The NBA says that protecting the game's integrity, or honesty, is its top priority. Under the new deals, prediction markets can use official league data, and they promise to limit which markets they offer and to share information about suspicious trades. Critics may ask whether more gambling partnerships can really fix problems caused by gambling.

What to watch

  • Whether the NBA announces more prediction market deals soon.
  • How the CFTC and state governments respond to Kalshi and Polymarket.
  • The results of the state lawsuits against Kalshi and other companies.
  • Whether the NBA's promised limits on "permissible markets" are enforced.

Glossary

Kalshi
A prediction market company where people can bet on future events.
Polymarket
A prediction market website where people bet on what they think will happen.
CFTC
The US government agency that oversees futures and some prediction markets.
DraftKings
A company that runs online sports betting and gambling services.
prediction markets
Markets where people bet on whether future events will happen.
prop bets
Bets on specific events inside a game, such as how many points a player will score.

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