NBA Commissioner Adam Silver stated that the league requires access to prediction market data to detect and regulate insider trading, a move that highlights the growing tension between sports integrity and emerging financial instruments. In an interview with CNBC's Contessa Brewer on Friday, Silver emphasized that whether these platforms are labeled as prediction markets or sports betting, the core issue remains the protection of league integrity.
"We want access to that data. We also want control of the market," Silver told CNBC during a "Squawk Box" interview. He described the existence of contracts tied to specific events, such as whether a coach might be fired, as "odd behavior." Silver argued that consistent national policy is necessary because the NBA is currently regulated by approximately 40 different jurisdictions.
Silver's remarks follow a significant legal development from the National Football League. On Thursday, the NFL filed an amicus brief with the Supreme Court supporting New Jersey regulators. The brief asserts that sports contracts on prediction markets should be classified as gambling rather than financial swaps. This distinction is critical because financial swaps are regulated at the federal level by the Commodity Futures Trading Commission, while gambling is typically overseen by state authorities. The NFL cited concerns regarding market manipulation in contracts related to player injuries or performance as a primary reason for its position.
The league also advocated for a minimum trading age of 21, aligning with the benchmark used by several states for sportsbooks. While Silver agreed with this age limit, he supported federal authority over prediction market platforms to ensure uniformity. The NFL's legal strategy comes amid a surge in trading volumes for NFL prediction market contracts following the start of the season last month.
Recent court rulings have complicated the regulatory landscape. Multiple courts have ruled in favor of states overseeing prediction market exchanges instead of the CFTC. Last week, an Illinois court issued a favorable ruling for prediction markets, halting the state from applying its gambling laws to event contracts from Kalshi and Coinbase. Kalshi co-founder Luana Lopes Lara described the ruling as "beautiful" on social media. A commercial relationship exists between Kalshi and CNBC, which includes a minority investment and customer acquisition arrangements.