MLB embraces prediction markets with Polymarket partnership and CFTC memorandum

(AsiaGameHub) –   Major League Baseball (MLB) is formally entering the prediction market space through new agreements with Polymarket and the Commodity Futures Trading Commission.

This serves as a notable indication of how top sports leagues are beginning to develop novel game format combinations that integrate gambling, finance, and fan engagement.

Per the contract terms, Polymarket is named MLB’s official prediction market partner. Simultaneously, MLB Commissioner Rob Manfred and CFTC Chair Michael Selig have executed a Memorandum of Understanding centered on safeguarding sports integrity.

The Polymarket deal is estimated to be between $150 million and $300 million over a three-year maximum period. Structured as a traditional sponsorship, it grants Polymarket the right to use MLB logos and trademarks, along with exposure on league digital platforms and events. Additionally, the company will leverage official league data supplied by Sportradar.

MLB currently collaborates with leading betting operators like FanDuel, DraftKings, and BetMGM. Importantly, this new development should not be seen as ending those partnerships but rather as adding another element to the broader strategy.

Contrary to some assumptions, Polymarket does not yet have full U.S. operations. Nevertheless, several sports-related contracts—including those with MLB branding—have already launched on its platform. Baseball-specific markets, however, remain inactive for the time being.

MLB’s entry into this space—though it remains the largest U.S. sports organization—is not entirely unprecedented. The NHL has two agreements with Polymarket and Kalshi, while MLS and UFC are also partnering with Polymarket.

In fact, this concept is not new. When Manfred spoke in February, he noted that prediction markets had been under consideration, particularly following the exposure of betting scandals involving Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz.

He said:

We believed it was crucial to inform owners about how prediction markets differ from sports betting, and why we might consider engaging with prediction markets to protect our integrity and secure the necessary safeguards.

Selig added:

We have committed to collaborate in safeguarding the integrity and robustness of prediction markets tied to professional baseball.

Manfred also stated:

The new agreements with Polymarket and the CFTC are essential steps in proactively managing the emerging and fast-growing prediction market sector. Protecting on-field game integrity remains our primary focus. By engaging with this community, we can jointly establish clear boundaries to mitigate risks while offering fan engagement opportunities.

Though prediction markets continue to prompt industry questions, MLB is evidently adopting a more controlled and proactive stance as this sector evolves.