Professional athletes from the NBA, NFL, MLB, NHL, and MLS are asking the government to stop people from betting on their bad performances. Their unions sent a letter to federal regulators asking them to ban prediction markets from letting users bet on things like a player getting injured or having a terrible game.
This isn’t just about hurt feelings. Athletes are worried that letting people profit from their failures creates dangerous incentives. Someone who bet big money on a star player having a bad night might try to influence the outcome through threats, bribes, or worse.
Money Where Your Mouth Is
Prediction markets have exploded in popularity recently. These platforms let people bet real money on almost anything – from election results to whether a quarterback will throw three interceptions. The athletes’ unions are specifically targeting “under” bets, where you win money if a player performs worse than expected.
The unions sent their complaint to the Commodity Futures Trading Commission, the federal agency that oversees these betting platforms. They want “appropriate regulations” to protect athletes from the darker side of prediction markets.
The timing makes sense. Sports betting has become mainstream since the Supreme Court cleared the way in 2018. Now athletes are seeing the downside of having millions of dollars riding on their every move.
Expect a fierce lobbying battle. Prediction market companies will argue this limits free speech and market efficiency. But when athletes from five major sports leagues unite on something, politicians tend to listen.
