The National Football League (NFL) has called on the U.S. Commodity Futures Trading Commission (CFTC) to tighten regulations for prediction markets on sporting events. This was stated in a letter dated July 27.
The NFL noted that maintaining the integrity of the games is its top priority. In the league's opinion, the rules proposed by the regulator do not provide sufficient protection for competitions and market participants.
Manipulation
The NFL proposed restricting contracts on events that could be manipulated by one person or a small group of individuals. Examples cited included bets on a kicker missing a field goal or a quarterback throwing an inaccurate first pass.
Separately, the league asked the CFTC to clarify the definition of contracts that cannot be meaningfully distinguished from gambling.
NFL representatives also criticized the possibility of an exemption for markets on awards and voting. They believe this could allow platforms to circumvent restrictions by adding a formal voting or award-granting element to sports contracts.
As a controversial example, The Block cited a market on the winner of the Offensive Player of the Year award. The outcome of such a contract depends on a voting panel, but the subject itself is related to player performance.
Insider Information
Another set of proposals concerns material non-public information. The NFL urged the CFTC to explicitly state that trading sports contracts based on confidential league, team, or related-party information should be considered a manipulative or deceptive practice.
The letter's authors also proposed introducing mandatory lists of individuals prohibited from trading contracts for specific competitions. The NFL believes platforms should not rely solely on their own controls.
Furthermore, the league reiterated previous demands: a ban on margin trading, advertising restrictions, additional user protection measures, and an age threshold of 21.
The CFTC and States Dispute Continues
Meanwhile, questions remain regarding the regulation of prediction markets at the federal and local levels. CFTC Chairman Michael Selig insists that the agency has "exclusive jurisdiction" over the sector, as event contracts fall under the category of swaps. States object, arguing that platforms violate local gambling laws.
In July, this dispute put Kalshi in a difficult position. The CFTC demanded that the platform settle transactions for Michigan residents normally, even though a state court ordered it to annul the same operations in late June.
At the end of the month, a U.S. Federal Court temporarily prohibited Minnesota from applying a new law to platforms registered with the Commodity Futures Trading Commission. Kalshi and Polymarket US will continue operating in the state until the dispute is resolved. The judge considered that some contracts on event outcomes might fall under the exclusive jurisdiction of the CFTC.
Industry organizations are also dissatisfied. For example, American gambling associations have called on the U.S. Senate to ban prediction markets related to sports and gambling.
Premudrye Kity
Amid the FIFA World Cup, Kalshi and Polymarket surpassed traditional U.S. bookmakers. In June, Kalshi's trading volume exceeded $31 billion — 70% higher than May's figure. According to Dune, sports contracts accounted for 85% of the platform's turnover.
The international platform Polymarket updated its monthly record to $10.8 billion. Its regulated U.S. version collected $3.5 billion.
Recall that in June, Kentucky authorities filed lawsuits against Kalshi and Polymarket. The state accused the platforms of operating unlicensed sports betting under the guise of prediction markets.
