NFL urges CFTC to strengthen rules on sports prediction markets: report

The National Football League is reportedly calling on Commodity Futures Trading Commission Chair Michael Selig to curb sports prediction markets, arguing the agency’s proposed rules for event contracts fall short in protecting the integrity of its games and consumers, according to a letter dated July 27 obtained by The Closing Line, a prediction markets newsletter.

In the letter, the league responds to the CFTC’s recent draft rulemaking, stressing its top priority is preserving the integrity of its games.

"The NFL’s highest priority is preserving the integrity of our games," a screenshot of the letter shows. "We believe that this integrity is crucial also to the stable and orderly administration of event contracts that trade on or in connection with our games and to the protection of traders in such contracts. While the Proposed Prediction Market Rulemaking contains several productive proposals, it must be strengthened in key areas."

Unlike the NHL and Major League Baseball, which have partnered with platforms like Kalshi and Polymarket, the NFL has pushed for tighter regulation of prediction markets. In March, for instance, the league sent a letter to Kalshi and Polymarket, the leading providers, to pull back on a range of contract offerings.

The CFTC has sharply reversed prior restrictive approaches to prediction markets by withdrawing a 2024 proposal that would have banned sports and political event contracts, defending its exclusive federal jurisdiction against state challenges in court and advancing clearer “rules of the road” that treat prediction markets as legitimate derivatives.

This supposedly pro-innovation stance, pushed by lone CFTC Commissioner Selig, a 2025 Trump appointee, has enabled the rapid growth of predictions platforms.

NFL's requests

The NFL’s latest request centers on restricting highly vulnerable markets that can be easily manipulated by a single person, depend on discretionary officiating, or involve outcomes knowable in advance, The Closing Line, founded by longtime gambling industry journalist Dustin Gouker, reported.

“The Commission must refine the proposed definition for contracts based on events that cannot be meaningfully differentiated from activities that are clearly gaming activity,” the NFL reportedly wrote.

Additionally, the NFL appears to have taken issue with a 10-day pre-approval process for event contracts, arguing the review window is too short and potentially immunizing already-listed contracts. It also raised points of contention over markets like “Offensive Player of the Year,” which the CFTC is seeking to permit because they involve a voting panel.

On the subject of insider trading, the league said it wants explicit rules around the use of material non-public information and recommended the use of mandatory “league-specific prohibited bettor” lists rather than relying on platforms to self-police.

The letter also reiterated previously submitted recommendations like a “margin trading ban, advertising restrictions, and other important consumer and game integrity protections,” including an age limit of 21 years.