CFTC Urges Prediction Markets To Partner With Sports Leagues

March 14, 2026 - 03:50

The U.S. Commodity Futures Trading Commission (CFTC) has taken a significant step to shape the future of event-based prediction markets. The agency issued new guidance alongside an Advance Notice of Proposed Rulemaking (ANPRM), specifically targeting event contracts. These financial instruments allow individuals to speculate on the outcome of real-world events.

A primary focus of the regulatory move is the massive market for sports-related contracts, which currently accounts for up to 90% of trading volume on registered platforms. The CFTC's guidance strongly encourages prediction market platforms to establish formal partnerships with the relevant sports leagues. This push for collaboration aims to address long-standing concerns about integrity, insider information, and the potential for market manipulation.

The initiative signals a potential shift toward a more structured and sanctioned ecosystem for sports wagering beyond traditional sportsbooks. By advocating for direct partnerships, regulators hope to create a framework where leagues have a vested interest in market oversight. The ANPRM will solicit public comment on these and other issues as the CFTC considers establishing clearer, permanent rules for this rapidly evolving sector of the financial landscape.