The National Football League (NFL) has reportedly warned Congress that the rapid expansion of sports-related prediction markets poses serious integrity and consumer protection risks, particularly because such products are being offered nationwide, including in states where traditional sports betting remains illegal.
In written testimony submitted on 11 December (Thursday) to the House Committee on Agriculture, as reported by ESPN, the league said it is “particularly troubled” by sports futures contracts that fall outside state gambling oversight. The hearing focused on whether prediction markets should continue to be regulated at the federal level by the Commodity Futures Trading Commission (CFTC).
Oversight of prediction markets is “a hotly contested legal issue,” and has emerged as one of the most contentious regulatory battles in US gambling, with state regulators challenging companies such as Kalshi and Polymarket over whether their products constitute illegal sports betting.
Prediction markets allow users to trade contracts based on yes-or-no outcomes of real-world events, including sporting results and in-game developments. While legal sportsbooks currently operate in 39 states and Washington, DC, the NFL noted that prediction markets are available in all 50 states.
“We are particularly troubled that several sports-related futures contracts have been launched nationwide, including in jurisdictions where sports betting has not been legalised,” wrote Jeff Miller, the NFL’s executive vice president, in the testimony.
“These contracts fall outside the purview of state regulatory authorities and the safeguards they impose upon the industry,” Miller added.
The league warned that trading volumes on prediction markets could ultimately surpass those of traditional sportsbooks, creating what it described as “substantially greater risks to contest integrity”.
Miller contrasted the state-based sportsbook model, where regulators work closely with leagues to approve bet types and wagering limits, with the federal framework governing prediction markets.
“In each of these state-regulated markets, regulators and state legislators closely monitor betting activity and, with input from professional sports leagues, can determine which bets and wager levels are acceptable,” he wrote. “Those guardrails do not exist in prediction markets.”
The NFL specifically cited contracts that allowed trading on whether terms such as “concussion protocol,” “late hit,” or “roughing the passer” would be mentioned during game broadcasts.
“Congress and the CFTC should prohibit these and other types of objectionable bets among the many consumer and integrity protective measures needed before sports-related events contracts are legalised,” Miller said.
ESPN has reported that the newly formed Coalition for Prediction Markets (CPM), whose members include several of the largest operators in the sector, like Kalshi and Robinhood, rejected the NFL’s characterisation of the industry.
“This testimony is like saying the stock market has no rules,” a CPM spokesperson told ESPN. “The CFTC’s regulations on abusive or manipulative trading apply to prediction markets just like the SEC’s regulations apply to the stock market.”
The coalition said prediction market platforms employ monitoring tools before, during and after trading activity, and can bring enforcement action when violations occur.
The debate comes as several major sportsbook operators, including DraftKings, FanDuel and Fanatics, have announced plans to launch prediction market products, despite their existing partnerships with the NFL. Meanwhile, other leagues have taken a different approach. The National Hockey League and the UFC have both signed partnerships with prediction market companies in recent months.
In August, the NFL issued a clear directive to its players and staff stating that trading sports event contracts on prediction market platforms such as Kalshi or Robinhood will be treated the same as prohibited sports betting. Speaking to reporters, Sabrina Perel, the league’s chief compliance officer, confirmed that the NFL has updated its gambling policy education to explicitly cover prediction markets.
#NFL #PredictionMarkets #SportsBetting #USGambling #GamingRegulation #CFTC #SportsIntegrity
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