The NBA announced agreements Monday with the federal government and two major prediction markets that will make Kalshi and Polymarket the league's "Preferred Prediction Market Exchanges."

The deal is designed to establish a comprehensive framework for NBA-related prediction markets and includes a Memorandum of Understanding with the United States Commodity Futures Trading Commission.

The agreements with Kalshi and Polymarket include significant integrity protections for NBA-related markets, including limitations on permissible markets, bans on NBA league and team personnel from making trades related to league events and transparency when it comes to investigations and suspicious trading.

“Protecting the integrity of the game is our top priority,” Scott Kaufman-Ross, NBA Head of Media Distribution & Partnerships, said in a statement.  “As this category develops, we believe it is important to work constructively with regulators and operators to help ensure that appropriate safeguards are in place. 

"These partnerships represent an important step in establishing a framework that creates new opportunities to engage our fans," he added.

The NBA said the memorandum of understanding with the CFTC focuses on cooperation and information sharing related to NBA prediction markets. 

"The agreement reflects a shared commitment to ensuring that NBA-related prediction markets are subject to appropriate regulatory oversight and integrity protections," an NBA news release reads.

In addition to the preferred partnerships with Kalshi and Polymarket, the NBA said it expanded its agreement with DraftKings to include prediction markets and plans to expand its relationship with other official sports betting partners in the coming weeks.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.