Major League Baseball (MLB) has become the latest to enter into a partnership with Polymarket, with the organization confirming on Thursday that a Memorandum of Understanding has already been signed with the relevant federal authority, the Commodity Futures Trading Commission (CFTC).
MLB’s Boss Is Confident Prediction Markets Are Safe and Free of Manipulation
The goal of the MoU is to ensure that baseball will remain free of manipulation despite the partnership with Polymarket, with the prediction market segment coming under serious criticism of late.
At least two bills have been filed seeking to address prediction markets and the suspected manipulation of these markets, which could empower foreign adversaries, endanger American lives, and lead to serious consumer-related issues, such as addiction.
The Bets Off Act is a bipartisan bill that wants to pass stricter controls over the segment, as does a separate bill introduced by Senator Richard Blumenthal.
MLB Commissioner Rob Manfred has highlighted the ongoing efforts to ensure that prediction markets are free of manipulation, pointing to the ongoing communication between Polymarket and CFTC.
“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,” Manfred said, adding:
“Protecting the integrity of the game on the field is our top priority. By engaging in this community, we are able to work together to create clear boundaries to mitigate risk while providing fan engagement opportunities.”
MLB Commissioner Rob Manfred
The CFTC will now access confidential information from the MLB in order to ensure that prediction markets are not being manipulated. This puts CFTC in a difficult situation, critics have argued, as it is effectively now doing what gaming regulators around the country do – look into potential manipulation of betting contests.
CFTC Welcomes Developments, Says Regulator Poised to Do Its Part
CFTC Chair Michael S. Selig has commented on the newly-signed MoU with the MLB, and the partnership between the league and the regulator:
“We’ve committed to work together to protect the integrity and resilience of prediction markets relating to professional baseball. Through this partnership, the @CFTC is well-positioned to add additional tools to protect our markets from fraud, manipulation, and other abuses. Thanks to @MLB and Commissioner Manfred for working with us to protect the integrity of these growing markets.”
It is not clear whether the CFTC will be able to effectively handle this process, as skeptics point out that investigating match-fixing and corruption in sports is a lengthy and difficult process, and the regulator should focus on financial issues only.
