Breaking: Major Sports Unions Demand Ban on 'Under' Prop Bets
In a coordinated move, unions representing players from the NBA, NFL, MLB, NHL, and MLS have formally asked the Commodity Futures Trading Commission (CFTC) to prohibit prediction markets from offering bets on a player's underperformance or injury. The letter, obtained by Sports Business Journal, warns that such wagers expose athletes to 'abusive and harassing behavior.'
'These bets directly threaten the safety and well-being of our members and their families,' the unions wrote in their submission to the CFTC. 'Allowing markets to profit from an athlete's injury or poor performance invites harassment and undermines the integrity of competition.' The request was filed in response to the CFTC's call for public input on regulating prediction markets like Kalshi and Polymarket.
Background: CFTC Seeks Input on Prediction Markets
The CFTC earlier this year sought comments on how to oversee event-based contracts—often called prediction markets—that let users bet on outcomes from elections to sports statistics. These platforms have exploded in popularity, with some contracts specifically targeting individual player stats like 'under 20 points' or 'will suffer an injury.'
The unions' letter focuses on the most invasive category: 'under' bets that profit when a player underperforms or gets hurt. It argues that such contracts 'create perverse incentives for bad actors to target athletes.'The unions are not asking for a ban on all sports betting—only on 'unders' that directly impact an individual's career and personal safety.
Key Demands from the Letter
- Immediate ban on prediction market contracts tied to a player's underperformance or injury.
- Stronger regulations for event-based betting platforms, including mandatory reporting of suspicious activity.
- Protections for athletes' privacy and security, especially regarding health data used in settlement.
What This Means: Athlete Safety vs. Market Innovation
If the CFTC adopts the unions' request, it would effectively halt a booming segment of prediction markets that has drawn both investors and gamblers. Kalshi and Polymarket currently list dozens of 'over/under' contracts on professional athletes, with some settling based on injury reports.
'This is a critical inflection point,' said sports law expert Professor Amelia Torres of Georgetown University. 'The CFTC must balance innovation in financial markets with the real-world harm that these bets can cause to individuals. The unions have presented a compelling case.'Industry advocates argue the ban would stifle free markets and push activity offshore. However, the unions counter that the risks are too high: 'No athlete should ever feel that their health is a wagering instrument.'
The CFTC is expected to issue proposed rules later this year. Meanwhile, multiple state legislatures are also examining the impact of micro-betting on player safety.