NBA Bans More Prop Bets and Parlays at Sportsbooks — But Not at Prediction Markets
The NBA sent a memo to its licensed sportsbook partners, including DraftKings and FanDuel, on Friday instructing them to drop or restrict several player-prop and parlay markets, according to Legal Sports Report. The new limits target parlays that combine multiple "under" bets on a single player's statistics, bets on opening tips and certain individual in-game plays, unders on players projected for fewer than 12 minutes, and alternate under lines offering bigger payouts.
Why now
The restrictions follow two federal gambling cases that have loomed over the league: former player Jontay Porter, who admitted deliberately limiting his own playing time to help bettors cash unders, and Terry Rozier, who has pleaded not guilty to similar allegations tied to a 2023 game he left after roughly nine minutes. Prosecutors said one gambler placed an $80,000 parlay on six of Porter's statistical unders that carried a potential payout of about $1.1 million. The new rules build on existing NBA restrictions that already bar certain bets tied to players on short-term contracts, turnovers, fouls, and missed free throws.
DraftKings, FanDuel respond
DraftKings said several of the new restrictions already matched its existing sportsbook practices, while FanDuel said it supported the changes, pointing to its ongoing work with leagues and state regulators on game integrity. Neither operator's statement, as reported, disputed the substance of the new limits.
The prediction-market gap
The NBA's licensing agreements with sportsbooks are reported to cover more than 99% of the US sports betting market, which is how the league can dictate which markets operators offer. Those agreements don't extend to prediction-market platforms offering sports contracts under federal commodities oversight, so the new restrictions have no effect there. The NBA hasn't announced a formal prediction-market partnership, but Legal Sports Report reports industry expectations that one could arrive during the 2026-27 season — several NBA stars, including Giannis Antetokounmpo, LeBron James, and OG Anunoby, already hold individual deals with prediction-market companies, and Kalshi sponsors Madison Square Garden, home of the Knicks.
The gap mirrors a broader fight playing out across pro sports this year: the NFL filed with the Supreme Court on October 8 arguing that Kalshi and the CFTC have resisted integrity safeguards comparable to those required of licensed sportsbooks, while the NHL and MLB have each struck their own prediction-market partnerships over the past year.
Why it matters to bettors
For bettors, the immediate effect is a narrower prop menu at licensed sportsbooks for low-minute players and certain under-heavy parlay combinations — markets that, per the cases cited above, had already drawn scrutiny for being easy to manipulate with inside knowledge of a player's playing time. The episode is also a reminder that "the same bet" can carry different rules depending on whether it's offered by a state-licensed sportsbook or a federally regulated prediction-market exchange, a distinction that's becoming more relevant as prediction markets expand their sports offerings.