The National Football League (NFL) has filed an amicus brief with the U.S. Supreme Court, arguing that sports prediction markets constitute gambling and should be subject to state-level regulation. The league’s brief supports New Jersey regulators in their legal dispute with Kalshi, a platform that asserts its products are financial instruments under federal jurisdiction.
In the filing, the NFL contends that prediction contracts based on sporting events function as wagers and should be overseen by state authorities, which have traditionally regulated gambling. Kalshi has maintained that its event contracts are financial swaps, placing them under the exclusive authority of the federal Commodity Futures Trading Commission (CFTC).
“It is well established, however, that regulating gambling is among states’ sovereign police powers,” the NFL stated in its brief.
The league outlined several concerns related to the integrity of its games. It specified that certain betting contracts, such as those on the outcome of a specific field goal or a player’s actions, could be susceptible to manipulation. The NFL also expressed concerns about wagers related to player injuries or officiating decisions, which could be influenced by individuals with inside information.
In a statement to CNBC, the NFL said it is not opposed to the existence of prediction markets but believes states are better equipped for oversight. “In the end, we believe that given the current resource constraints of the CFTC, this is a job better left to the states,” the league said.
The NFL is also advocating for a minimum participation age of 21, consistent with most state laws for sports betting. Some prediction market platforms, including Kalshi, permit users as young as 18.
“Neither the CFTC nor the prediction market companies themselves— despite our persistent urging — have banned categories of bets susceptible to manipulation or set a 21 age limit,” the NFL added in its statement.
During a Sept. 10 interview with CNBC Sport, NFL Commissioner Roger Goodell said the league intended to be patient before engaging with the markets. “We don’t feel like we have to be the first in this,” Goodell stated. “We feel like we’re going to be right, and the best thing to do is be patient.”
The case reaches the Supreme Court following conflicting rulings from federal appeals courts on whether state gambling laws can apply to markets regulated by the CFTC.
While the NFL, National Basketball Association, and PGA Tour have not entered into partnerships with prediction markets, other professional sports organizations have. The National Hockey League has agreements with both Kalshi and Polymarket. Major League Baseball, Major League Soccer, and the UFC have deals with Polymarket.
