US derivatives markets regulator The Commodity Futures Trading Commission (CFTC) and Major League Baseball (MLB) have announced the signing of a Memorandum of Understanding (MOU), just ahead of the launch of MLB’s 2026 season next week.

The parties called the agreement the “first of its kind” between the CFTC and a professional sports league.

The MOU establishes a framework for the CFTC and MLB to discuss, cooperate, and exchange information concerning issues of common interest, but primarily around protecting the integrity of professional baseball and the relating Prediction Markets.

The MLB has something of a dark history with gambling, dating back more than a century to the 1919 Black Sox scandal where Chicago White Sox players were accused of trying to lose the World Series, to all-time hits leader Pete Rose being banned from the game and still kept absent from the Hall of Fame in Cooperstown, NY.

More recently, such as in other major North American sports where legal gambling has increased, there have been a number of prop bet related scandals around player performance.

The new MOU provides a mechanism for the CFTC and MLB to exchange information in a manner consistent with applicable law, which will enable both parties to more swiftly respond to incidents and better anticipate emerging trends.  Pursuant to this landmark MOU, the CFTC and MLB confirm their commitment to working together to further their respective missions.

CFTC Chairman Michael S. Selig said,

“The MOU is a collaborative step towards promoting the integrity and resilience of the prediction markets relating to professional baseball. Through this MOU, the CFTC is well-positioned to add additional tools to protect these markets and its participants from fraud, manipulation, and other abuses. I thank MLB and Commissioner Rob Manfred for partnering with the CFTC and taking a leading role in protecting the integrity of these growing markets.”

The CFTC is looking to revamp rules covering Prediction Markets being offered by (mainly) financial brokers such as Robinhood, who have effectively used event contracts traded on Prediction Markets to offer a form of sports betting.