NBA Seeks Access to Data from Prediction Markets

NBA Commissioner Adam Silver said the league wants access to data from prediction markets in order to detect insider trading. Silver made the remarks on Friday, October 9, on CNBC's Squawk Box.

According to Silver, prediction markets raise the same integrity problems as classic sports betting. He said particular care is needed with contracts that involve sensitive information about teams, players and coaches. He described trades based on whether a head coach will be fired as "strange behavior." Silver said the league wants access to data and control over the market.

The debate centers on whether such markets should be regulated by states as gambling or evaluated under federal financial market rules. On Thursday, October 8, the NFL filed a brief with the Supreme Court supporting New Jersey regulators. The league argued that sports contracts are subject to gambling laws. The NFL also pointed to the risk of market manipulation in contracts tied to injuries and individual performance, and asked that the minimum age for trading be set at 21.

Silver said he agrees with the age limit but prefers that prediction market platforms be subject to federal regulation. Noting that the NBA faces about 40 regulatory jurisdictions, he argued that a consistent national framework would be more appropriate than a patchwork of rules. The debate came up as trading volume in NFL-related prediction market contracts grew during the football season.