Professional sports unions representing athletes in the NBA, NFL, MLB, NHL, and MLS have formally called on the Commodity Futures Trading Commission (CFTC) to prohibit prediction markets from offering bets on a player’s poor performance or injury. The demand, delivered in a letter to the CFTC, cites an urgent need for regulations to shield players and their families from harassment and abuse.
“Allowing wagers on whether a player will underperform or get hurt creates perverse incentives and invites malicious behavior against athletes,” said a coalition spokesperson. The unions argue that such bets directly threaten player safety and the integrity of professional sports.
The letter was submitted in response to the CFTC’s request for public input on how to oversee prediction market platforms like Kalshi and Polymarket. Besides banning “under” bets, the unions also urged the commission to broadly restrict any event contracts tied to individual athlete statistics.
Background
Prediction markets allow users to place bets on the outcome of real-world events, including sports performances. Platforms such as Kalshi and Polymarket have grown rapidly, drawing scrutiny from regulators and industry stakeholders.
The CFTC had sought comments on whether these markets should be treated as commodities or gaming, and how to enforce existing laws. The unions’ intervention underscores growing anxiety about the potential for betting markets to fuel harassment, fix matches, or exploit players.
What This Means
If the CFTC heeds the unions’ request, it could effectively shut down a lucrative segment of the prediction market industry. For athletes, it would remove a direct source of financial and emotional stress tied to their on-field performance.
However, the move may face legal pushback from platforms that argue their contracts are legal financial instruments. The decision will likely set a precedent for how the US regulates emerging betting technologies.
The unions are expected to follow up with more detailed proposals, and the CFTC’s next steps could come within weeks.