Full Breakdown
Major League Soccer Partners with Polymarket Amid Controversy Over Prediction Markets
1/27/2026, 6:22:46 AM
MLS Enters the Prediction Market Arena
Major League Soccer (MLS) has announced a multiyear partnership with Polymarket, marking its entry into the controversial realm of prediction markets. This partnership follows the NHL's lead, which became the first major U.S. professional sports league to engage with prediction markets in October 2022. Unlike traditional sportsbooks, Polymarket and similar platforms allow users to trade on the outcomes of events, including sports, and can operate in all 50 states, including those where sports betting is illegal.
Chris Schlosser, senior vice president of emerging ventures at MLS, emphasized the importance of maintaining the integrity of the sport. He stated that the partnership aims to ensure that integrity principles are upheld, similar to existing measures in sports betting. The league is particularly interested in engaging fans in states where sports betting is not permitted, such as California and Texas.
Integrity Measures and Fan Engagement
The partnership will include safeguards to monitor trading activity, with independent oversight from firms like IC360 and Sportradar. Individuals with insider information, including players and league staff, will be prohibited from trading on MLS-related outcomes. Schlosser noted that the league is working on ways to engage fans during matches, including real-time market activity that allows them to trade on expected outcomes.
MLS will have some control over the types of markets offered, aiming to eliminate those that could be influenced by individual players, such as penalties or yellow cards. This proactive approach is intended to mitigate potential integrity issues associated with prediction markets.
Criticism and Concerns Surrounding Prediction Markets
Despite the league's efforts to maintain integrity, critics argue that prediction markets are essentially casinos in disguise. Benjamin Schiffrin, director of securities policy at Better Markets, contends that platforms like Polymarket and Kalshi use the term "prediction market" to evade state gambling regulations. He asserts that these markets are not genuine and lack the regulatory oversight necessary to protect participants.
Schiffrin highlights the absence of insider trading laws governing prediction markets, which raises concerns about fairness and transparency. He argues that without proper regulation, these platforms could exploit vulnerable demographics, particularly young men prone to harmful betting habits.
Official Statements and Responses
Chris Schlosser reiterated the league's commitment to integrity, stating, "Our desire really started from an integrity standpoint. How do we ensure the integrity of matches and competition to the best of our ability?" He acknowledged that the partnership with Polymarket is a thoughtful decision aimed at creating a robust integrity framework.
Conflicting Reports and Gaps
While MLS is moving forward with its partnership, the legal status of prediction markets remains contentious. Multiple state gaming regulators have raised concerns about the legality of these platforms, with lawsuits filed against competitors like Kalshi. The regulatory landscape is evolving, and it remains unclear how future legal decisions will impact the operation of prediction markets.
What's Next for MLS and Polymarket
As the partnership develops, MLS plans to label other platforms as "authorized prediction markets," contingent on adherence to integrity principles. The league is still determining whether individual players can engage in endorsement deals with prediction-market platforms. The ongoing discussions highlight the complexities of integrating prediction markets into the sports landscape while addressing regulatory and ethical concerns.
