NBA Restricts Player Prop Bets, but Prediction Markets Remain Unaffected

According to a memo from the NBA this past Friday, changes are coming to player prop and parlay betting at NBA-partnered sites, though prediction markets can complicate things. 

The memo from the NBA mentioned that partners, such as FanDuel and DraftKings, will stop offering parlays where you can combine multiple unders on the same player's statistics, individual plays, the opening tip, under wagers on players that are predicted to play fewer than 12 minutes, and alternate under lines. This is added to a list of restrictions that already included provisions against turnovers, fouls, missed free throws, and players on short-term deals. 

This comes after massive scandals involving players like Jontay Porter and Terry Rozier. As for Porter, he limited his playing time to benefit bettors on him. One wager involved someone betting $80,000 on multiple Porter under bets for a $1.1 million payout. Something similar happened with Rozier, who left a game early in March 2023 after playing only nine minutes. 

NBA Betting Restrictions Don't Automatically Apply to Prediction Markets

DraftKings said it has already been practicing these, and FanDuel supported the changes. While the NBA can restrict betting markets through its sportsbook agreements, those restrictions don't carry over to prediction markets, which offer sports contracts currently under federal regulation and oversight by the Commodity Futures Trading Commission. 

Another NBA memo highlighted additional measures to protect integrity, including former NFL player and retired FBI agent Charles Tillman leading training on betting rules. The NBA is also enhancing its AI monitoring system to look for activity that could be deemed suspicious. 

The NBA will also update its fan code of conduct on gambling-related harassment. In partnership with Social Protect, the NBA will launch a text hotline for players to report online social media messages. 

NBA Prediction Market Partnerships Could Affect Future Betting Rules

Right now, the NBA doesn't have a prediction market partnership, though it could have one during the season. If a deal were made, it could affect their contracts. Several NBA players are partnered with prediction market platforms, including LeBron James, OG Anunoby, and Giannis Antetokounmpo. Kalshi also sponsors Madison Square Garden. 

The NHL has a partnership with Kalshi and Polymarket, and MLB is partnered with Polymarket. MLS and UFC also have deals. The only major league without one is the NFL, which is awaiting further regulation and has also told the Supreme Court where it stands on prediction market platforms.