The National Football League (NFL) has taken a direct stance against certain types of sports betting contracts offered on cryptocurrency-based prediction markets. According to reports from ESPN, the league sent letters to major platforms, including Polymarket and Kalshi, requesting they refrain from offering trades on football events deemed "easily manipulated or determined in advance."
The NFL specifically flagged contracts tied to single-play events, such as whether a quarterback's first pass is incomplete or if a kicker misses a field goal. It also raised objections to markets linked to draft picks, roster decisions, broadcast mentions, celebrity attendance, penalties, and player injuries, arguing they could create incentives for manipulation.
In a significant regulatory development, Commodity Futures Trading Commission (CFTC) Chairman Michael Selig stated the agency will "afford a lot of deference to the leagues" when evaluating which contracts are vulnerable to manipulation. "If a league is telling us that a contract is going to be readily susceptible to manipulation, we’ll evaluate the risks there," Selig said in an interview, adding, "the leagues are very well positioned to make those calls." This signals a collaborative regulatory approach where the CFTC heavily weighs the integrity concerns of professional sports leagues.
This action occurs amidst a broader push for prediction market regulation. Lawmakers have introduced a bipartisan bill aiming to bar federally regulated prediction markets from offering sports-related contracts. Furthermore, several state gaming authorities are challenging the legality of these platforms in court. Notably, Major League Baseball (MLB) recently struck a partnership with Polymarket and signed an agreement with the CFTC to share information and monitor risks, indicating a different, more cooperative strategy compared to the NFL's direct requests.
The NFL has not publicly released the full contents of its letter, and it remains unclear whether Polymarket or Kalshi plan to adjust their offerings in response. Both platforms were contacted for comment but did not provide an immediate response.
