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- MLB to share league data and marks with Polymarket
- League reportedly has option to void partnership if exchanges violate state law
- CTFC to share information with league and to support responses against incidents
Major League Baseball (MLB) has struck a multi-year deal reportedly worth US$150 million for Polymarket to become its official prediction market exchange.
Polymarket will have exclusive rights to use MLB’s brand across its products and access to official league data from Sportradar, while the firm will receive exposure across MLB’s digital ecosystem and at live events.
MLB will also work with the company on creating an integrity framework that will restrict markets that are at risk of manipulation, including individual pitches, manager decisions and umpire performance.
MLB also plans to establish integrity partnerships with all other prediction markets exchanges that offer baseball contracts, placing similar obligations.
“Polymarket is about bringing fans closer to the moments that define sports,” said Shayne Coplan, founder and chief executive of Polymarket. “By working collaboratively with Major League Baseball and regulators, we can create new ways for fans to engage with the game while protecting the integrity of the sport.”
According to ESPN, the partnership could be voided if courts rule that prediction markets violate state law. MLB’s collaboration with Polymarket comes days after Arizona filed misdemeanour charges against another exchange in Kalshi, claiming it runs an illegal sports and election betting operation.
To further safeguard its integrity concerns, MLB commissioner Rob Manfred has also signed a memorandum of understanding (MOU) with Michael Selig, chairman of the Commodity Futures Trading Commission (CTFC).
The MOU aims to ensure a quick response to incidents, with MLB and the CTFC to share information confidentially. Both will meet regularly to identify and discuss any issues considered a threat to the integrity of MLB’s games and the MLB prediction market landscape.
“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,” said Manfred.
“Protecting the integrity of the game on the field is our top priority. By engaging in this community, we are able to work together to create clear boundaries with the goal of mitigating risk while providing fan engagement opportunities.”
SportsPro says…
Prediction markets, which let people buy and sell shares or contracts linked to various outcomes, have become increasingly popular in the US. It is projected to become a highly lucrative market, with traditional betting companies now rushing to unveil a similar product in order to cash in.
MLB joins the Ultimate Fighting Championship (UFC), Major League Soccer (MLS) and the National Hockey League (NHL) to strike partnerships with exchanges, with leagues realising they provide a unique, interactive fan experience combining live data and financial incentives.
However, exchanges operate under federal commodities and derivatives regulation, which is overseen by the CTFC, rather than state gambling laws. The legal action taken by Arizona underlines the intent from states to further regulate prediction markets, while federal lawmakers have introduced a bill to ban contracts based on political events and military operations.
Accordingly, MLB believes it is safeguarding itself against any integrity risks by signing a MOU with the CTFC. The league this season has already faced a betting scandal involving two pitchers from the Cleveland Guardians, and will be eager to avoid any further incidents that puts itself in jeopardy.
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