As it gets into formal partnership with prediction markets, Major League Baseball (MLB) has signed a historic deal with U.S. derivatives regulators, which creates a framework for sharing information between the league office and the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC announced on Thursday that it entered its first ever memorandum of understanding (MoU) with a professional sports league, establishing a mechanism to cooperate and exchange information.
The agreement was announced alongside a deal between MLB and Polymarket, which positions itself as the league’s “official” prediction market. Among other things, that agreement gives Polymarket exclusive access to official data and trademarks from MLB.
In light of that arrangement, the MoU with the CFTC is designed to protect the integrity of these emerging betting markets and the underlying sport.
“This MoU is a statement of intent to discuss, cooperate, and exchange information concerning issues of common interest, such as the integrity of professional baseball and the event contract markets,” the text of the agreement reads.
The cooperation between the CFTC and MLB is expected to be achieved primarily through “ongoing, informal consultations,” along with meetings, written requests and other arrangements, it noted.
“The MOU is a collaborative step towards promoting the integrity and resilience of the prediction markets relating to professional baseball,” said CFTC chairman, Michael Selig, in a release.
Last year, U.S. exchange company Intercontinental Exchange, Inc. said it would invest up to US$2 billion in Polymarket, in a deal that valued the firm at US$8 billion.