NBA names Kalshi and Polymarket preferred exchanges amid state fights

The NBA has named Kalshi and Polymarket its two preferred prediction-market exchanges, giving both platforms access to official league data and U.S. marketing rights as Kalshi faces a Utah lawsuit seeking up to $61.2 million in allegedly unlawful fees.

The NBA announced the agreements on Oct. 26 alongside a memorandum of understanding with the Commodity Futures Trading Commission, setting out cooperation on basketball-related markets and restrictions on the contracts its commercial partners can offer.

DraftKings has expanded its existing NBA agreement to cover prediction markets and nationwide promotion, the league said. Other current sports betting partners and companies in the industry are expected to enter expanded relationships in the coming weeks, according to the announcement.

NBA partnerships give both exchanges data and marketing rights

Kalshi and Polymarket will receive rights to use NBA intellectual property and run promotional activities across U.S. media channels, according to the league. Both companies will receive official basketball data through Sportradar, the NBA’s official data distribution partner, to operate and settle authorized markets.

For Kalshi and Polymarket, the designation combines commercial rights with obligations governing basketball-related trading, the league’s release states. The NBA placed DraftKings in a separate category of authorized prediction-market operators and said all agreements in that category will carry enhanced integrity requirements and restrictions aligned with its latest sports betting limits.

Adam Barrick, Kalshi’s head of sports partnerships, described the agreement as a milestone for the company and said its relationship with the league centers on fan engagement and safety. He characterized Kalshi’s markets as open and fair, with nationwide consumer protections.

Polymarket’s president of sports business development, Ari Borod, said the partnership would let its customers engage more deeply with basketball. In the NBA’s release, he committed the company to working with the league on a safe and transparent prediction-market environment.

Trading restrictions cover NBA personnel and suspicious activity

The league said its agreements with the two preferred exchanges limit permissible markets, expressly prohibit league and team personnel from trading NBA event contracts, and require the platforms to share information relating to investigations and suspicious trading.

Scott Kaufman-Ross, the NBA’s head of media distribution and partnerships, said the league wants to work with regulators and operators on safeguards as the prediction-market business develops.

“Protecting the integrity of the game is our top priority,” Kaufman-Ross said.

The separate CFTC memorandum focuses on cooperation and information sharing, the NBA said. Reuters reported that CFTC Chairman Michael Selig and NBA Commissioner Adam Silver signed the document, which provides for sharing information that could affect the integrity of professional basketball.

The CFTC has maintained that prediction-market contracts fall within its financial-market jurisdiction, while states have argued that sports contracts are subject to their gambling laws, Reuters reported. The agency reiterated its position in the agreement released Monday.

Utah is seeking fees and restrictions on Kalshi contracts

Utah Attorney General Derek Brown filed a civil complaint on Oct. 20 against Kalshi, affiliated businesses and two Susquehanna trading firms. As crypto.news previously reported, the state is seeking to recover allegedly unlawful fees and prevent residents from accessing disputed event contracts.

Brown’s office estimated fees from Utah-linked accounts at between $30.6 million and $61.2 million through Oct. 19. The complaint seeks restrictions covering sports, elections, politics, culture and mentions, along with restitution and the surrender of profits the state alleges were obtained illegally.

Kalshi spokesperson Jacki McGavick disputed the state’s characterization, saying the exchange operates under federal oversight and lets customers trade against one another to determine prices.

In an earlier federal case, U.S. District Judge Robert Shelby granted summary judgment to Utah on Aug. 4, finding that the Commodity Exchange Act did not prevent the state from enforcing its gambling laws against Kalshi.

Legal analyst Daniel Wallach said the Tenth Circuit subsequently denied emergency protection on Sep. 8, leaving Utah free to pursue enforcement while Kalshi continued its appeal. The emergency decision did not resolve the underlying appellate challenge.

Missouri disputes include licensing, age limits and taxes

Missouri’s attorney general sent warnings to six prediction-market operators in September, including Kalshi and Polymarket. The state demanded compliance with its sports wagering rules or an end to unlicensed sports contracts offered to residents.

Crypto.com’s derivatives exchange and Novig filed separate federal lawsuits on Oct. 16 seeking to block enforcement. Both companies argued that federal commodities law gives the CFTC exclusive authority over their contracts.

Missouri’s requirements include a minimum betting age of 21 and a 10% tax on gross sports betting receipts. Attorney General Catherine Hanaway alleged that five of the six targeted operators permitted underage access or lacked adequate safeguards; her office excluded Novig from that specific allegation.

Separately, the NBA and WNBA announced a responsible gaming campaign on Oct. 13 with the National Council on Problem Gambling. The leagues said the campaign will address sports betting and prediction-market risks, particularly among young adults, and encourage participants to set time and spending limits.

Working with the council, the leagues said they will direct fans toward education on recognizing gambling problems and finding support. They plan to announce the campaign’s creative materials and debut timing later.