NFL Argues Prediction Markets Should Face State Gambling Regulations

The National Football League has asserted that prediction markets operate similarly to sports gambling and should be subject to state-level regulations. In an amicus brief filed recently, the NFL stated that billions of dollars are wagered on NFL games through these prediction markets annually, and any delay in regulation could increase consumer harm and risks to the integrity of games.

The league has previously expressed objections to markets that involve outcomes like coaching decisions, officiating, or injuries, citing concerns about potential insider information influencing these markets. While the NFL has not partnered with prediction market operators, it has established agreements with official online sportsbooks.

The NFL's brief highlighted concerns about the Commodity Futures Trading Commission's (CFTC) lack of explicit acknowledgment of these objectionable contracts, which are listed by operators like Kalshi. The league suggested this could create significant risks for players, coaches, officials, and market participants.

However, a CFTC spokesperson stated that the commission has been in communication with the NFL regarding its rulemaking agenda and policy priorities. The spokesperson added that the NFL declined to sign a Memorandum of Understanding (MOU) that would have facilitated better discussion, cooperation, and information exchange to promote the integrity and resilience of prediction markets.

Kalshi, a prediction market operator, countered that its priority is market integrity and that it partners with other major sports leagues such as MLB, NHL, and USTA. Kalshi also noted that the CFTC is actively overseeing sports-related markets and that the commission's ongoing rulemaking addresses many of the NFL's stated concerns.

A CFTC source suggested that the NFL's filing indicates a desire to regulate the regulator rather than solely focus on game integrity. The source emphasized that a federal framework, as established by Congress, is the most effective way to regulate prediction markets, contrasting it with state-by-state regulations.

Polymarket, another prediction market platform, stated its commitment to game integrity and its collaboration with the CFTC, SEC, and other professional leagues toward a unified federal framework. This comes as New Jersey challenges a federal appeals court ruling that supported Kalshi's position, asserting that federal commodities law supersedes state gambling regulations.

Prediction markets are accessible to individuals aged 18 and older, while online sportsbooks typically require users to be 21 or older.