MLB warns players against prediction markets in the wake of betting scandal

• Front Office Sports has revealed information about a memo issued to players in the Major League Baseball
• The memo warned players against participation in prediction markets and was dated August 26
• The MLB is embroiled in a high-level betting scandal, with the integrity of professional sports increasingly questioned

Major League Baseball is still reeling from a high-profile betting scandal that has seen some of its top-performing athletes involved in an underhanded practice of sharing inside information that can help influence betting outcomes.

MLB gave an early warning to players about prediction markets

As the league is dealing with the fallout, Commissioner Rob Manfred has also taken the opportunity to address the increased and sustained interest in prediction markets, which he sees as another threat to the integrity of the sport and professional baseball.

In a statement originally seen by Front Office Sports, Manfred said: "Several companies (including Kalshi, Robinhood, and Crypto.com, among others) are now offering what they call ‘prediction markets,’ which allow members of the public to risk money on the outcome of specific events, including baseball and other sporting events."

The memo, however, was not shared just recently – rather, Manfred mailed it off back on August 26, with Front Office Sports contacting sources within the MLB to investigate further and establish the validity of the memo.

The concern seems to be about insiders leaking information to gamblers who then place predictions on these platforms, although gaming would require a syndicate of gamblers who end up influencing one side disproportionately, only to win big, fading the crowd in the end.

At the same time, prediction markets seem to be more firmly embedded in popular culture, with both CNN and CNBC now confirming data deals with Kalshi, the de facto US leaders in the space.

Prediction markets are different than traditional sportsbooks in the sense that they are regulated under the Commodity Futures Trading Commission, but have been repeatedly challenged by local gambling regulators all the same.

The series of high-profile scandals embroiling the NBA and the MLB has prompted both professional leagues to issue frequent reminders to players and caution them against behavior that could undermine the integrity of their respective sports.

All of this comes at a time when Americans are increasingly skeptical of professional athletes’ integrity and their honesty in performing to the best of their ability.

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