Major League Baseball (MLB) has signed two major deals that mark its firm entry into the prediction markets space.
America’s oldest pro sports league has signed a multi-year deal with leading prediction market provider Polymarket and has also reached an agreement with the federal regulator of event contracts, the Commodity Futures Trading Commission (CFTC).
On Thursday, Polymarket and the MLB agreed to a multi-year deal to make Polymarket the league’s exclusive prediction market partner. As part of the pact, Polymarket secured access to MLB’s trademarks and logos, and will also leverage the league’s official data for its event contract markets on the league. Polymarket will also expand its reach through digital promotions both during games and online.
The pact comes a week before the start of the new MLB season on March 25. The exact terms of the partnership between Polymarket and MLB have not been disclosed.
MLB & CFTC reach an agreement
Separately, the MLB has also signed a memorandum of understanding (MOU) with the CFTC that centers on information-sharing concerning prediction markets and sports event contracts. The MOU makes it clear that it does not “supersede any applicable laws or regulations” as sports event contracts face regulatory and legal pushback for their alleged resemblance to state-sanctioned sports betting.
“MLB will use the information received from the CFTC pursuant to this MOU solely in connection with protecting the integrity and public confidence in professional baseball,” the document read.
“The CFTC will use the information received from MLB pursuant to this MOU solely in connection with its statutory responsibilities, missions, purposes, functions, and activities under the Commodity Exchange Act, including promoting the integrity, resilience, and vibrancy of the event contracts market.”
“The new agreements that we formed with Polymarket and the CFTC are imperative steps in proactively managing the new and rapidly growing prediction market space,” said MLB Commissioner Rob Manfred in a statement.
MLB looks to take some control over sports contracts
Polymarket and the MLB have agreed to a deal less than two months after Manfred notified league owners about potential partnerships with prediction market platforms. Manfred said that he was exploring the idea of deals with the companies to ensure the integrity of competition amid the growing popularity of the prediction market sector and sports event contracts.
The league’s partnership with Polymarket also enables the MLB to monitor event contract trading related to its games and players, including efforts to ensure that markets with potential for manipulation will not be offered, including those on individual pitches and manager decisions.
The MLB’s desire to ensure the integrity of competition comes amid an investigation into an alleged pitch-level market betting scheme involving Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz, who are both on non-disciplinary paid leave.
MLB also warned its players about interacting with prediction markets and their sports event contracts amid the alleged gambling scandal involving Clase and Ortiz.
Polymarket builds relationships with major sports leagues
Polymarket is collaborating with MLB after solidifying a footprint in North American pro sports through partnerships with the UFC, MLS and NHL.
Last October, the NHL became the first U.S. pro sports league to officially enter the prediction market space through deals with Polymarket and Kalshi. Polymarket’s pact with the NHL provides the company with the ability to leverage the league’s data and logos. The deal also extends to brokers and merchants that work with Kalshi and Polymarket.
Similar to Manfred’s comments, NHL Commissioner Gary Bettman attributed the league’s partnerships with the two partnership platforms as a way to stay “in control” of sports event contract markets.
A month after securing a deal with the NHL, Polymarket also struck a deal with mixed martial arts giant UFC. The multi-year deal with UFC owner TKO Holdings delivers live market integrations during UFC bouts. Polymarket will also deliver live integrations for Zuffa Boxing, a boxing promotion co-owned by TKO.
Polymarket is also an official partner of Major League Soccer through a deal announced in January with the league’s commercial arm, Soccer United Marketing. The pact makes Polymarket the exclusive prediction market partner of the MLS, its All-Star game and championship game and also includes mandatory independent monitoring of trading. The MLS chose Polymarket as its prediction market partner after an evaluation period that included the prediction market’s competitors.
