Major League Baseball names Polymarket as a prediction market partner

Major League Baseball announced Thursday that it has named 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 have exclusive access to MLB logos and official statements and will receive “brand exposure” across league events. MLB said the agreement will include a “comprehensive integrity framework.”

“Polymarket aims to bring fans closer to the moments that define sports,” Polymarket CEO Shane 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, MLB said it established a “clear intent” to share information with the CFTC related to prediction markets. While Polymarket will have exclusive rights, MLB said it will retain its relationships with other prediction market exchanges that offer baseball contracts.

Polymarket and MLB also said they will work together to “restrict markets that pose a risk to the integrity of MLB, such as individual stadiums, manager decisions and umpire performance, among other things,” adding that Polymarket will restrict contracts for events that pose a “risk to the integrity” of the game.

The agreement comes as concerns grow over betting and sports. Last year, two Cleveland Guardians players were indicted on charges of receiving bribes from sports bettors as part of a scheme to rig bets on pitches placed 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 risks while providing fan engagement opportunities.”

Prediction markets have boomed in popularity, allowing users to trade events ranging from sports to politics to pop culture. They have also come under intense scrutiny due to allegations of insider trading and lack of regulation.

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

Disclosure: CNBC and Kalshi Prediction Market have a business relationship that includes a minority investment in CNBC.