Athletes demand ban on sports betting markets that target player underperformance

In a unified stance, player associations from the NBA, NFL, MLB, NHL, and MLS have jointly petitioned the Commodity Futures Trading Commission to prohibit prediction market platforms from offering bets on an athlete’s underperformance or injury. The coalition’s letter, submitted in response to the CFTC’s public consultation on market regulation, argues that such wagers could enable harassment and expose players and their families to targeted abuse.

The unions’ request follows a broader debate about the ethical boundaries of prediction markets, which have expanded in recent years to include a wide range of speculative contracts—from game outcomes to individual player statistics. Platforms like Kalshi and Polymarket allow users to trade contracts tied to real-world events, including athlete behavior, performance slumps, or even injuries. While these markets claim to provide insight into public sentiment, critics warn they may incentivize malicious behavior or erode trust in competitive integrity.

In their letter, the unions emphasized the need for "appropriate regulations" to safeguard athletes. They highlighted concerns that bets on underperformance could normalize abusive conduct, such as online harassment or doxxing, directed at players who struggle during games or face extended absences due to injury. The letter also referenced past incidents where athletes have reported receiving threats or suffering reputational damage as a result of speculative market activity.

The CFTC’s request for comment, issued in March 2026, seeks input on how to balance innovation with consumer protection in prediction markets. The agency is evaluating whether additional guardrails are necessary to prevent market manipulation or harm to participants. While the unions’ primary focus is on banning "under" bets, their broader argument touches on the need for transparency and accountability in decentralized trading platforms.

Major League Baseball Players Association executive director Tony Clark stated, "Athletes deserve to compete without fear of being targeted for financial speculation on their personal or professional setbacks." Similarly, National Basketball Players Association deputy executive director executive director Osman Khan noted that "prediction markets should enhance fan engagement, not create new avenues for harm."

As the CFTC reviews feedback, the debate over prediction market regulation is poised to intensify. Lawmakers and advocacy groups are increasingly scrutinizing the role of speculative trading in shaping public perception—especially in high-stakes industries like professional sports. The outcome of this process could redefine the boundaries of what is permissible in financial markets tied to real-world events.