The partnership was announced ahead of Opening Day and comes after last season’s controversies involving alleged bribes to throw pitches, sharpening focus on betting integrity.

Polymarket frames the deal as building on collaborations with Palantir and TWG AI to create a next-generation sports integrity platform, stressing regulator and league cooperation to protect the game while enabling fan engagement.

Historically, the CFTC resisted some prediction market activities, but under the current administration it has embraced the technology and expanded its authority over such markets.

Polymarket’s competitor Kalshi faces regulatory challenges in multiple states over how prediction markets are classified, highlighting a broader regulatory environment.

The move comes amid ongoing regulatory tensions between federal regulators and state gaming authorities over who oversees sports-related prediction markets.

MLB and the CFTC have signed a Memorandum of Understanding to discuss maintaining game integrity and supervising prediction markets, with the CFTC outlining tools to combat fraud and manipulation.

The MOU is described by the CFTC chair as a collaborative step to protect market integrity, while MLB’s commissioner says the aim is to mitigate risk and boost fan engagement within clear boundaries.

MLB and Polymarket also signed an MOU, signaling regulatory cooperation and information sharing related to prediction markets, with the CFTC chair involved.

CNBC discloses its relationship with Kalshi, noting industry connections mentioned in the coverage.

The article places the development in a broader context: prediction markets are rising in popularity amid past integrity concerns, including a 2024 incident involving Guardians pitchers.

The announcement follows similar moves by Major League Soccer and foreshadows partnerships seen in the NHL, illustrating a growing trend of leagues exploring prediction markets.

Polymarket and Kalshi are reportedly pursuing fundraising at about a $20 billion valuation, signaling strong market interest in prediction market platforms.