The U.S. Commodity Futures Trading Commission (CFTC) and the National Hockey League (NHL) have signed a memorandum of understanding intended to strengthen oversight and safeguards for prediction markets related to hockey. The agreement outlines a framework for information-sharing and coordination between the derivatives regulator and the league, aiming to help ensure that markets tied to professional hockey are managed within applicable regulatory expectations.
Both outlets report that the NHL deal follows a similar approach previously used in baseball, where the CFTC also reached an arrangement with the relevant sports organization to bolster protections around sports-related prediction markets. The hockey memorandum is described as an effort to reduce risks that can arise when wagering or derivatives markets intersect with sports events, including concerns about integrity and the potential for market impact from nonpublic information.
The memorandum of understanding does not replace existing CFTC regulatory authority, but it is presented as an additional step to improve communication and oversight as sports prediction markets continue to develop.
