US CFTC, NBA agree to cooperate over basketball and prediction markets

WASHINGTON, Oct 26 (Reuters) - US regulators and the National Basketball Association entered into a cooperative ‌agreement over prediction markets, the Commodity Futures ‌Trading Commission said on Monday, amid concerns about insider trading ​and market oversight. The two entities agreed to share related information that could have a direct impact on the "integrity" of professional basketball, according to a copy ‌of their memorandum ⁠of understanding signed by CFTC Chairman Michael Selig and NBA Commissioner Adam Silver. Representatives ⁠for the NBA could not be immediately reached for comment. The pledge follows a recent sports betting scandals ​that have ​resulted in lifetime ​bans from the NBA ‌and other charges, including the arrest of more than 30 people last year in connection with a federal probe into illegal gambling. The CFTC has asserted oversight of prediction markets, arguing they are facilitating ‌trading in a type of ​financial instrument and reiterated its ​stance in the ​agreement released on Monday. Multiple states have ‌sued to block the CFTC's ​attempt to ​assert oversight, arguing prediction markets are facilitating gambling and as such their sports bets should ​be subject ‌to stringent state laws. (Reporting by Susan Heavey and ​Amy Tennery; additional reporting by Michelle Price; ​Editing by Doina Chiacu)