NFL urges the Supreme Court to rule on regulation of prediction markets

[NFL Pushes Supreme Court to Rule on Regulatory Authority Over Prediction Markets]

The NFL is urging the Supreme Court to rule on the regulation of prediction markets, arguing in an amicus brief filed Thursday that states — which already regulate legal sports books — are better positioned to oversee sports‑related contracts “given the current landscape.”

The NFL is supporting New Jersey’s request for the Supreme Court to determine the governing authority for prediction markets, which enable trade or wagering on the outcomes of future events. The Commodity Futures Trading Commission maintains exclusive federal jurisdiction, while states claim the series of simple yes‑or‑no inquiries resembles gambling and lies within their domain.

“Absent the clarity that only this Court can provide, (prediction market) operators will continue exploiting the gap between state and federal regulation, endangering consumers and the integrity of sports events across the country,” lawyers for the NFL wrote.

According to the NFL’s brief, on the opening Sunday of the season, more than half of the trading volume on prediction markets — $1.8 billion of the total $3.3 billion — came from the league.

“Any delay from the Court will result in increasing consumer harm and risk to game integrity,” the NFL added in its brief.

Kalshi spokeswoman Elisabeth Diana said its top priority is market integrity, pointing to partnerships with the NHL, Major League Baseball and other sports organizations as evidence.

“Contrary to the NFL’s statements, the CFTC is actively policing sports‑related markets, which are now listed on nearly every U.S. commodities exchange,” the spokeswoman noted. “The CFTC’s ongoing rulemaking addresses many of the NFL’s alleged concerns, and those rules operate under the same comprehensive federal enforcement system that safeguards trillions of dollars in U.S. market activity.”

A Polymarket representative said the operator shares the NFL’s focus on preserving game integrity and is developing “a harmonized federal framework that delivers a stronger, more consistent form of integrity compared to a patchwork of disconnected state laws built for a bygone era.”

Ohio submitted a brief on Wednesday asking the high court to side with New Jersey and preserve the authority of all states to regulate prediction markets, mirroring the powers granted to jurisdictions handling casino gambling and sports betting. The filing received support from thirty‑eight states, including attorneys general from both party leagues such as Arkansas, California, Illinois, Missouri, New York, South Carolina and Pennsylvania.

Approximately twenty states are currently litigating over prediction markets, and a divided appellate landscape makes a Supreme Court decision increasingly likely. While the 6th and Ninth U.S. Circuit Courts of Appeals have ruled in favor of state regulation seekers, the 3rd U.S. Circuit Court of Appeals sided with Kalshi earlier this year.

“Between the two approaches, the NFL concludes that the Sixth and Ninth Circuits correctly interpreted the current landscape,” the league asserted in its brief.

The NFL is also challenging the CFTC’s ability to enforce. In the submission, the league cites a workforce of five hundred forty‑three employees whose duties span a wide array of derivatives beyond event contracts.

“Without adequate staff dedicated to oversight and enforcement, even the most rigorous regulations cannot sufficiently safeguard game integrity and consumer protection,” the brief contends.

A request was submitted seeking commentary from the CFTC.

The NFL has advocated for the CFTC—and prediction markets—to adopt a roster of prohibited wagers that it deems the most threatening to game integrity, though it has not yet provided a specific list. It has also asked the commission to set an age limit of twenty‑one for participants, up from the current eighteen.

Diana noted that Kalshi attempted collaboration on market‑integrity initiatives but received no response.

“A message was left by the Associated Press seeking comment from the CFTC.”

Associated Press writer Marc Levy contributed.

See AP’s full sports coverage here

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