Polymarket Inks Pact With MLS as Exclusive Prediction Market Platform
One of the leading prediction markets, Polymarket, announced a multiyear agreement with Major League Soccer to be its exclusive partner in that category.
Polymarket Pioneers Soccer Partnership
Despite recently reentering the US market in December, Polymarket has been aggressively searching for partners with professional sports leagues and franchises. Last week, reports surfaced that the company has established a multiyear partnership with Major League Soccer (MLS).
This is a groundbreaking deal for both parties as MLS becomes the first global soccer league to partner with a prediction platform. Polymarket is now the official and exclusive partner of MLS, the MLS All-Star Game, the MLS Cup presented by Audi, and the Leagues Cup for prediction markets.
This arrangement will likely lead to more prediction markets partnering with soccer leagues around the globe, but at this point, this partnership is the first of its kind and will give fans Polymarket’s real-time data throughout the matches.
The timing of the agreement coincides with the FIFA World Cup coming to North America this year.
Maintaining Integrity
Prediction markets have faced a rather litigious journey since they began offering sports event trading contracts a year ago in the run-up to Super Bowl 59. Legal battles between the prediction markets and state gaming regulators in several jurisdictions have been waged at the state and federal levels.
The gaming commissions argue that the prediction markets do not hold licenses, pay state taxes, and possess no guardrails for public safety in terms of problem gambling resources and maintaining the integrity of the events.
Conversely, the prediction markets have countered that they are federally licensed by the Commodity Futures Trading Commission (CFTC) and that status allows them to operate in all 50 states without the authority of the state gaming commissions.
Thus far, court rulings have allowed the prediction markets to continue operating, but the legal questions surrounding that ability are still unresolved. The CFTC has taken a hands-off approach to the matter and has not rendered any guidance on sports event trading.
The newly installed chairman of the CFTC, Michael Selig, initially stated the matter should be left up to the courts, but he recently announced the agency was drafting new rules to adapt to cryptocurrency, emerging technologies, and perhaps sports event trading.
