Athletes from the NBA, NFL, and MLB urge a prohibition on betting ‘unders’

Unions representing professional athletes from the NBA, NFL, MLB, NHL, and MLS are urging the Commodity Futures Trading Commission (CFTC) to prohibit prediction market platforms from allowing bets on player underperformance or injuries. In their letter, they emphasize the need for “appropriate regulations” to safeguard athletes and their families from “abusive and harassing behavior.”

This letter was a response to the CFTC’s call for feedback on the regulation of prediction markets, including those run by Kalshi and Polymarket. The unions not only seek a ban on “under” bets but also want the CFTC to stop wagers on whether specific terms, like “concussion,” are mentioned during broadcasts, labeling this as “another way of betting on a negative outcome.”

In 2024, Jontay Porter, a former center for the Toronto Raptors, admitted guilt in a conspiracy to commit wire fraud linked to a betting scandal that involved him intentionally limiting his participation in games for betting purposes, as reported by the NBA. Additionally, the US Department of Justice charged several current and former NBA players last year for “using private locker room and medical information to enrich themselves.”

The sports unions argue that the CFTC should also ban the “unauthorized use” of information regarding a player’s injuries, illnesses, performance metrics, or other health-related data. Furthermore, the NBA has requested that the CFTC restrict prediction market betting to individuals over 21, while Kalshi and Polymarket currently permit users aged 18 and older.

As prediction markets gain traction, the CFTC has pushed back against state efforts to regulate these platforms. To date, the CFTC has initiated lawsuits against Arizona, Connecticut, Illinois, New York, and Wisconsin, claiming these states are infringing on the CFTC’s “regulatory authority” over prediction betting markets by attempting to impose their own rules.