Major League Baseball Inks Deals with US Regulator, Polymarket

Major League Baseball just pulled off a double play: they signed an "integrity protection" agreement with the US Commodity Futures Trading Commission (CFTC) AND named prediction markets platform Polymarket as their Official Prediction Market Exchange. Commissioner Robert Manfred inked the MOU with CFTC Chair Michael Selig after the league demanded "strong integrity protections in the rapidly evolving prediction market space."

Manfred straight-up said: "The new agreements that we formed with Polymarket and the CFTC are imperative steps in proactively managing the new and rapidly growing prediction market space." Translation: MLB ain't letting prediction markets run wild without oversight.

Backstory: In August, MLB sent a memo to players and clubs warning them about prediction markets, reminding them that the league's gambling rules apply. Then in November, two Cleveland Guardians pitchers got charged with sharing inside info with sports bettors. The league's clearly been building up to this regulatory crackdown.

This drops right as federal AND state lawmakers are coming for prediction markets like Polymarket and Kalshi. Congress has literally named Polymarket in proposed laws to ban bets on military conflicts. Meanwhile, state authorities are suing both platforms over sports betting without licenses.

Prediction markets offer contracts on everything from US politics to weather to pop culture, but state authorities keep challenging them over sports bets (and in Arizona, election wagering). Selig's been pushing hard for the CFTC's "exclusive jurisdiction" over prediction markets, even proposing new rules to oversee these companies.

That's the American Gaming Association throwing shade in January. Meanwhile, Cointelegraph reached out to Polymarket about potential lawsuits over this MLB deal — no response yet.

The baseball season kicks off March 26 with 22 teams playing across the US. As of Thursday, Polymarket already has event contracts listed for spring training games. MLB's playing both sides here: partnering with a prediction market platform while locking down regulatory oversight. Smart move or regulatory mess? We're watching.