MLB Bans Players from Prediction Markets Amid Betting Scandal

UPDATE: Major League Baseball (MLB) has officially banned players from participating in prediction markets, as revealed in a memo issued on August 26, 2025. This decisive action follows serious allegations against two players, Guardians pitchers Emmanuel Clase de la Cruz and Luis Leandro Ortiz Ribera, who face charges related to a wire-fraud scheme involving potentially hundreds of thousands of dollars in rigged bets.

The memo, titled “Re: Baseball Related Prediction Markets,” was distributed by Commissioner Rob Manfred’s office alongside the players’ union, emphasizing the league’s strict stance against any engagement in betting tied to baseball events. It specifically prohibits players from participating in platforms like Kalshi and Polymarket, which allow users to wager on the outcomes of sports events.

According to the memo, the MLB regards participation in these markets as a violation of its long-standing betting rules. It stated, “Several companies 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.” This warning comes at a time when both MLB and other leagues are increasingly scrutinizing the intersection of sports and gambling.

Reports indicate that the memo has been circulated among players at both major and minor league levels, with some confirming its distribution to locker rooms. However, the full impact of this announcement appears to be gradually reaching the players, raising questions about awareness and compliance.

The move to prohibit prediction market participation comes as MLB has been moving towards embracing online sports betting, forming partnerships with major operators like DraftKings and FanDuel. In contrast, the league has adopted a cautious approach regarding prediction markets, which have seen rapid growth in popularity.

Additionally, other leagues are also grappling with similar concerns. The NHL has already established agreements with both Kalshi and Polymarket, while NFL Commissioner Roger Goodell announced on December 3, 2025, that the NFL is not prepared to engage with these markets until a regulatory framework is established, citing ongoing legal challenges.

The MLB’s memo highlights the league’s commitment to maintaining the integrity of the sport amidst rising scandals related to gambling. Authorities are keenly aware of the delicate balance between expanding betting opportunities and protecting the game from corruption.

As the situation develops, all eyes will be on how MLB players respond to this memo and the broader implications for the league’s integrity and reputation. With ongoing investigations into player conduct and betting schemes, this issue is far from resolved.

Stay tuned for further updates as this story unfolds.