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Major League Baseball (MLB) has urged the U.S. Commodity Futures Trading Commission (CFTC) to introduce integrity safeguards for sports event contracts. The league argues that prediction markets, such as Kalshi and Crypto.com, increasingly resemble conventional sportsbooks but lack the same regulatory oversight.
In a letter sent on March 7 to CFTC Acting Chair Caroline D. Pham, Bryan Seeley, MLB’s Executive Vice President of Legal & Operations, called for stricter protections. He emphasized that exchanges should follow the same integrity standards as licensed sportsbooks.
“As the resemblance between sports event contracts and traditional sports betting markets continues to grow, so too does the need to replicate the integrity and consumer protections that exist at the state level,” Seeley wrote.
MLB highlighted that existing CFTC rules do not require exchanges to notify leagues of integrity threats, share suspicious activity data, or assist in investigations. Seeley noted that some platforms even claim current CFTC regulations prevent them from sharing information with leagues.
Kalshi currently offers markets on American League, National League, and World Series winners. However, the company has informed the CFTC of plans to expand into single-game and prop bets, which MLB believes carry greater integrity risks.
Regulatory scrutiny of sports event contracts has intensified in recent weeks. The Nevada Gaming Control Board (NGCB) recently issued a cease-and-desist order to Kalshi, requiring it to halt operations in Nevada by March 14. State regulators argue that sports and election markets must be licensed as gaming under Nevada law.
Meanwhile, the CFTC has been conducting a 90-day review of sports event contracts, which began on January 25. The commission has also submitted Nevada’s cease-and-desist letter as evidence in its ongoing federal case against Kalshi over political betting markets.
A Kalshi spokesperson responded to MLB’s concerns, stating: “We appreciate MLB’s comments and look forward to working in partnership with all of the leagues. As a highly regulated futures contract operator, we have a shared desire to ensure transparency, integrity, and data sharing.”
MLB’s intervention marks the first time a major sports league has directly addressed the issue of sports event contracts, highlighting the increasing overlap between traditional sports betting regulations and emerging prediction markets.