NFL Sends Letter to CFTC Urging It to Control Prediction Markets More Strictly

In a recent letter, the National Football League (NFL) has urged the Commodities and Futures Trading Commission (CFTC) to regulate prediction markets more strictly as the sector continues to grow rapidly.

NFL Urged CFTC For More Control

NFL Senior Vice President for Government Affairs and Public Policy Brendon Plack wrote to the CFTC Chairman Michael Selig on Friday as regulators continue the rulemaking process surrounding the markets. In the letter, Plack said the recommendations were intended to help preserve the integrity of the league. He stated that the proposals were designed to protect both the integrity of the sporting events tied to the prediction contracts and participants in those markets from fraudulent or manipulative activity.

Plack has repeatedly pointed to state gambling regulations as a framework for establishing safeguards around sports-related prediction market contracts. He also recommended that the National Futures Association collaborate with state gaming regulators through data-sharing agreements and enhanced enforcement measures aimed at identifying individuals who should be prohibited from trading.

The NFL isn’t the only large organization that has recently called on the CFTC to regulate prediction markets more strictly. Earlier this month, for example, the Pennsylvania Gaming Control Board criticized the CFTC for how the organization regulates prediction markets currently.

What Else Does the NFL Want?

Among the many recommendations that the NFL pointed out in its letter, chief among them is the prohibition of certain contracts it considers especially vulnerable to manipulation by a single individual. These include wagers on whether a kicker misses a field goal or whether a quarterback’s first pass falls incomplete. 

The league also said contracts tied to outcomes that could be known in advance should face restrictions. Examples of such contracts are the game’s opening play. Additionally, the NFL wants contracts involving “inherently objectionable” events, such as injuries, to also be removed. According to the league. Some of these events are easily manipulated. In fact, this is not the first time the NFL has raised concerns over this, as back in April, the organization warned prediction markets platforms like Kalshi and Polymarket to stop offering such events, as they can be more easily exploited.

The NFL’s letter also expressed concerns about the current age limit for users of prediction markets, which is set at 18. However, the NFL joined several other pro leagues, asking the CFTC to raise the age limit of prediction market users who can purchase contracts from 18 to 21. In addition, the NFL suggests there should be a dedicated certification process for individual player performance contracts instead of allowing platforms to self-certify.

The NFL isn’t the only major US sports body that has asked the CFTC to be stricter with prediction markets. Earlier this month, for example, the NBA also urged the CFTC to introduce stricter rules for platforms offering event contracts.