Major League Baseball names Polymarket as prediction market partner

Major League Baseball on Thursday announced it was naming Polymarket its official prediction market partner. The association also signed a memorandum of understanding with Commodity Futures Trading Commission Chairman Michael Selig.

According to the announcement, Polymarket and its brokers will gain exclusive access to MLB logos and official data and receive “brand exposure” across league events. The MLB said the agreement will include a “comprehensive integrity framework.”

“Polymarket is about bringing fans closer to the moments that define sports,” Polymarket CEO Shayne Coplan said in a statement. “By working collaboratively with Major League Baseball and regulators, we can create new ways for fans to engage with the game while protecting the integrity of the sport.”

Under the agreement with Selig, the MLB said it established a “clear intent” to share information with the CFTC related to prediction markets. While Polymarket will have exclusive rights, the MLB said it will retain relationships with other prediction market exchanges that offer baseball contracts.

Polymarket and MLB also said they would work together to “restrict markets that present an integrity risk to MLB, such as individual pitches, manager decisions, and umpire performance, among others,” adding that Polymarket would restrict event contracts that pose an “integrity risk” to the game.

The agreement comes as concerns about betting and sports have grown. Last year, two Cleveland Guardians pitchers were indicted on charges that they took bribes from sports bettors as part of a scheme to rig bets on pitches thrown during MLB games.

“Protecting the integrity of the game on the field is our top priority,” MLB Commissioner Robert Manfred said. “By engaging in this community, we are able to work together to create clear boundaries with the goal of mitigating risk while providing fan engagement opportunities.”

Prediction markets have been booming in popularity, allowing users to trade on events ranging from sports to politics to pop culture. They’ve also come under intense scrutiny for allegations of insider trading and lack of regulation.

The announcement follows Major League Soccer partnering with Polymarket earlier this year. The National Hockey League was the first major sports league to announce a prediction markets partnership last October.

Disclosure: CNBC and prediction market Kalshi have a commercial relationship that includes a CNBC minority investment.