NFL Asks Supreme Court to Let States Regulate Prediction Markets

The NFL is urging the Supreme Court to rule on the regulation of prediction markets, citing an amicus brief filed on Thursday. The league argues that states, which already regulate legal sports books, are better equipped to oversee sports-related contracts in the current landscape. The NFL supports New Jersey's request for the Supreme Court to decide the governing authority for prediction markets, which allow users to trade or wager on future events.

The Commodity Futures Trading Commission maintains exclusive federal jurisdiction over such markets, while states contend that the nature of the questions involved resembles gambling and falls under their authority.

The NFL's brief highlights concerns about the integrity of sports events and consumer protection, warning that without clear regulation, operators will exploit the regulatory gap. According to the NFL's brief, over half of the trading volume on prediction markets on the league's first Sunday was related to the league, amounting to $1.8 billion out of $3.3 billion total. The NFL contends that any delay in the Court's decision will result in increased harm to consumers and a risk to game integrity.

The league's lawyers argue that the CFTC has insufficient resources for oversight and enforcement, given its 543 employees responsible for a broad range of derivatives beyond event contracts. The NFL seeks a federal list of prohibited wagers and an age limit of 21 for trading on prediction markets, up from the current 18. Kalshi spokeswoman Elisabeth Diana emphasized market integrity and partnerships with various sports organizations, but disputed the NFL's assertions, stating that the CFTC is actively policing sports-related markets.