CFTC and MLB enter into MOU addressing prediction market integrity

On March 19, 2026, the Commodity Futures Trading Commission (CFTC) and Major League Baseball (MLB) entered into a Memorandum of Understanding (MOU) to establish a framework that allows the two parties to discuss, cooperate and exchange information related to prediction markets as well as protecting the integrity of professional baseball.¹ The MOU is the first of its kind between the agency and a professional sports league. On the same day that the MOU was announced, MLB also announced an official partnership with Polymarket as the league’s exclusive prediction market exchange.² Together, the MOU and the Polymarket agreement signal a shift towards enhanced regulatory oversight within the prediction market space and an acknowledgement of the rapid growth and opportunities within it.

Information Sharing

The CFTC and MLB anticipate ongoing consultations and periodic meetings to identify and address issues affecting both professional baseball and related prediction markets.³ Each party may, at its discretion, share information related to potential integrity threats, and coordinate during investigations, subject to applicable confidentiality requirements. The MOU sets out that safeguards will be established by both parties to preserve the confidentiality of shared information and to limit disclosure consistent with applicable law. The MOU does not create binding legal obligations or modify the CFTC’s authority under the Commodity Exchange Act or its enforcement responsibilities. Rather, it is intended to promote sustained collaboration between the parties in addressing emerging risks such as fraud, manipulation and other abuses.

Practical Implications for Prediction Markets and Derivatives Regulation

By entering into the MOU, the CFTC underscores its role in overseeing prediction markets as part of its broader mandate to regulate derivatives markets. More broadly, the agreement reflects an emerging model in which regulators collaborate with private entities to address integrity risks in evolving market structures. Although the MOU is nonbinding, it signals a deeper alignment between regulatory authorities and integrity oversight within professional sports. As the first agreement of its kind, it may also serve as a blueprint for similar partnerships between other professional sports leagues and participants in prediction markets.

For market participants, the development reinforces that prediction markets remain an active area of regulatory focus, particularly with respect to manipulation risk and the design of contracts tied to real world events. Given the precedent set by the MOU and the possibility of other major sports leagues following suit, market participants should evaluate their regulatory exposure and stay up to date if similar agreements should come to fruition.

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If you have any questions about this Legal Briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.

_{1 See CFTC Press Release No. 9199-26 (Mar. 21, 2026), CFTC and MLB Sign Groundbreaking MOU, available here.}

_{2 See MLB Press Release (Mar. 19, 2026), MLB names Polymarket exclusive Prediction Market Exchange partner and signs agreement with CFTC to establish integrity framework, available here.}

_{3 Memorandum of Understanding Between the Commodity Futures Trading Commission and Major League Baseball, available here.}