Developing The NBA Banned the Bet That Caught Jontay Porter. Two Days Earlier, DraftKings' Exchange Filed to Sell It Somewhere the League Cannot Reach
Friday's memo pulls same-player under parlays, opening-tip markets and sub-12-minute unders from every sportsbook with a league contract — about 99 percent of the regulated market. It does not touch DKeX, which self-certified NBA player props with the CFTC on Wednesday, or Kalshi, which did the same on October 4. The commissioner's "control of the market" stops at the partnership agreement.
October 16, 2026 at 7:16 PM EDT
6 min read
The NBA's Friday memo is the most specific document the league has produced about how it was robbed. Read the five new prohibitions back against the two cases that produced them and every one lines up. Parlays that stack the under on one player's statistics: that is the $80,000 ticket on Jontay Porter's points, rebounds, assists and threes before a March 20, 2024 game against Sacramento, which would have paid about $1.1 million if Porter had not been caught leaving after three minutes. Unders on players expected to play fewer than 12 minutes: that is Terry Rozier, who prosecutors say told an associate he would leave early against New Orleans in March 2023 and played nine minutes and 36 seconds. (Rozier has pleaded not guilty and denies wrongdoing.) Alternate-line unders with larger payouts, markets that pay when a player misses a specific shot, the winner of the opening tip. The memo calls them "low likelihood, high payout bets," which is a phrase for the thing a corrupt player can deliver alone.
What the memo cannot do is also precise, and the league's own executive said it out loud. The restrictions bind sportsbooks that have agreements with the NBA, which ESPN estimates at 99 percent or more of the regulated U.S. market. They do not bind offshore books. They do not bind Kalshi, Polymarket, or DraftKings' own exchange, DKeX, because the NBA has no partnership with any prediction market and no contract to enforce. Scott Kaufman-Ross, the league's executive vice president, told ESPN that enforcing the rules there "could be difficult" without such agreements.
Two days before the memo went out, DKeX self-certified a new NBA player-prop contract with the CFTC.
The same company, two rails
InGame reported the filing on Wednesday. The template reads: "Will [entity] record [condition] [count] [statistic] during the full game of [event] (Covered)?" The worked example is Shai Gilgeous-Alexander. The "covered" tag is an injury clause: if the player appears in the first half and not the second and the line is not reached, the contract settles at the last fair market price before tipoff rather than losing. Under the Commodity Exchange Act's self-certification process, the contracts could be listed as early as Friday if the Commission took no action. Friday is today. Kalshi self-certified its own "covered" markets on October 4 and rolled protected NFL player markets out on October 11.
So on the day DraftKings' spokesperson said the company "supports the NBA's efforts" and that the guidance "formalizes many of the market restrictions already reflected in DraftKings Sportsbook's practices," DraftKings' exchange had a live CFTC filing for NBA player statistical contracts on a venue the memo does not mention. We do not know whether DKeX intends to list unders, or same-player combinations, or anything in the restricted categories. A DraftKings spokesperson did not respond to InGame's question about whether the covered props would be opt-in or default. We asked ourselves the obvious follow-up and could not find an answer either: nothing in the DKeX filing, as reported, limits the direction of the contract. A "Will SGA record under 25 points" contract is a statistical contract. The CFTC's own June proposal preserves statistical performance markets while banning injury and discrete in-game props. It does not say anything about which side of the line a customer may take.
This is the structure our October 12 piece described when Adam Silver told CNBC the league wants "control of the market." Friday's memo is what that control looks like in the one place he has it. Everywhere else it is a request.
What was already gone, and what the memo adds
The memo is the third round of this. After Porter was banned for life in April 2024, the league got FanDuel, DraftKings and BetMGM to pull unders on two-way and 10-day-contract players that October; Porter was earning roughly $56,000 on a two-way deal, which was the point. After Rozier's arrest in October 2025, per Covers, the league reviewed markets on missed free throws, fouls and turnovers, and the two big books removed them. InGame's list of what was already prohibited heading into this week reads: 10-day-contract unders, turnover props, foul wagers, missed free throws.
Friday adds the parlay structure itself, the sub-12-minute threshold, opening tips, missed-shot markets and the alternate-line unders. It also adds things that are not bet types: in-person betting-rules training led by Charles Tillman, the former Bears cornerback who became an FBI agent; an upgraded AI monitoring platform for unusual betting; a fan code of conduct that now names harassment by bettors; an opt-in to Social Protect, which deletes abusive messages; and a text hotline for reporting threats. The bet-type list got the headline. The harassment provisions are the part most players will actually use.
Kaufman-Ross's framing was that "there's a balance between ensuring that we are removing problematic bet types but also ensuring that we don't just move activity into the illegal market," and that the current list "is the right balance of those two objectives." Both operators said the right things. FanDuel's statement called collaboration with league partners the "foundation" of the legal industry.
The strongest case that this is theatre
The honest objection is not that the memo is captured by the books. It is that it does not reach the crime.
Take the three convictions of the past week. On Tuesday a federal judge sentenced Jalen Smith, a basketball trainer, to six years for recruiting and bribing college players. On Wednesday in Philadelphia, Shane Hennen pleaded guilty to bribery, wire fraud and money laundering as the "fixer" who, with Marves Fairley, paid NCAA players $10,000 to $30,000 to underperform across the 2023-24 and 2024-25 seasons; the indictment describes 39 players, 17 schools and nearly 30 games. Those bets were spreads. The bettors took the other team to cover. No same-player parlay, no opening tip, no missed-shot market. A point-shaving ring does not need an exotic; it needs a line and a player who will lose by more than it.
Even inside the NBA cases, the memo removes the lever rather than the fulcrum. Rozier's associates, according to prosecutors, "loaded up" on his unders. A straight under on a player's points is still a legal bet at every partner book after Friday. The memo bans combining it with his rebounds, and bans the juiced alternate line, and bans it when he is projected under 12 minutes. A player who plans to leave early can still be bet under on a single statistic at standard odds, by as many accounts as a syndicate can open. The $80,000 Porter ticket becomes several $10,000 tickets. The payout multiple drops. The incentive does not vanish.
That objection is right as far as it goes, and the league's answer to it is the illegal-market line: ban the plain under and the money moves to a book that does not share data. We accept that too. But the argument has a hole the league dug itself. The legal venue that does not share data under a league contract is the one Kaufman-Ross conceded he cannot reach, and it is adding NBA player statistical contracts this week. The memo closes the exotic at FanDuel while the same product category opens at DKeX. If the fear is leakage, the leak is not offshore. It is federally registered and it files paperwork.
What would change our reading
If DKeX's covered contracts list only overs, or exclude same-player combinations, or carry a minutes threshold, then DraftKings has quietly extended the memo to its exchange and this piece overstates the gap. We will report that if it is shown. If the CFTC's final rule, whenever it arrives, bars unders on individual statistical lines, the league will have won by the rulemaking route our October 12 piece argued it should prefer. And if the NBA signs the exchange deal it has been negotiating since April, the restrictions will arrive at Kalshi or Polymarket the way they arrived at FanDuel: as a contract term, in exchange for a logo.
Until then the memo is an accurate map of the crime and an incomplete map of the market. The season opens Tuesday. The first NBA prop traded on an exchange this week will settle under rules the league did not write, on a rail its biggest partner built, and Friday's document does not mention it once.