CFTC and NHL Partner to Regulate Prediction Markets
The Commodity Futures Trading Commission (CFTC) has entered into a memorandum of understanding (MOU) with the National Hockey League (NHL) to enhance the oversight of prediction markets tied to professional hockey. The CFTC, under Chairman Michael Selig, announced the agreement on May 21, 2026, as part of its broader effort to assert exclusive regulatory jurisdiction over platforms like Polymarket and Kalshi.
The MOU aims to safeguard the integrity of NHL games and ensure transparency in event contracts related to hockey. The agreement provides a framework for information sharing and coordination between the CFTC and the NHL, addressing risks such as insider trading and fraud. According to the announcement, this partnership seeks to protect both market participants and the sport itself.
This isn’t the CFTC’s first foray into sports-related prediction markets. In March, the agency signed a similar agreement with Major League Baseball, coinciding with MLB’s announcement of Polymarket as its official prediction market exchange. These moves underscore the CFTC’s aggressive stance in consolidating control over the burgeoning prediction market sector.
Exclusive Jurisdiction: A Contentious Claim
The CFTC’s assertion of exclusive jurisdiction over prediction markets has sparked legal and regulatory clashes at both state and federal levels. The Commodity Exchange Act grants the CFTC authority over contracts listed on Designated Contract Markets, but several states have challenged this interpretation by enforcing local gambling laws. Recent lawsuits, including one against Minnesota for banning prediction markets, highlight the ongoing tension.
Chairman Selig has doubled down on the agency’s position, backing lawsuits against Ohio, Connecticut, Illinois, and New York while advocating for federal preemption of state laws. The CFTC’s actions, coupled with its recent advisory on insider trading, signal a clear intention to treat prediction markets as fully regulated derivatives venues, akin to traditional commodities markets.
Polymarket’s Next Move
In a parallel development, Polymarket filed a product self-certification letter with the CFTC on May 20, seeking approval to list combinatorial outcome contracts—essentially bundles of multiple event contracts. This follows Polymarket’s return to the U.S. market in late 2025 after resolving prior regulatory issues with the CFTC.
Platforms like Polymarket and Kalshi have become focal points for both regulatory oversight and market innovation. Kalshi recently faced scrutiny for disciplinary actions against traders, including political figures, accused of influencing event outcomes. These incidents further emphasize the need for robust regulatory frameworks, particularly as the prediction market industry continues to grow.
Why This Matters
The NHL’s 2026-27 season begins in September, but prediction markets are already active for the ongoing Stanley Cup playoffs. As more sports leagues engage with prediction platforms, the integrity of these markets becomes increasingly significant for both bettors and regulators. For traders, the CFTC’s involvement signals a more structured regulatory environment, potentially increasing confidence but also raising compliance costs.
Looking ahead, the CFTC’s approach to prediction markets will likely influence broader regulatory efforts. With the agency currently led solely by Selig due to unfilled commissioner seats, the eventual appointment of new leadership could shape the trajectory of enforcement and rulemaking in this space. For now, the MOU with the NHL solidifies the CFTC’s commitment to overseeing prediction markets while intensifying its battle over jurisdictional authority.