NFL asks prediction markets to refrain from ‘objectionable bets’
Detailed view of the NFL shield logo on the field during a preseason game between the Los Angeles Rams and Houston Texans at NRG Stadium in Houston on August 24, 2024.
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The NFL is asking prediction market operators to keep certain event contracts that the league deems “objectionable bets” off their platforms.
In a letter obtained by CNBC, the league outlines examples of event contracts that could be easily manipulated by a single person, inherently objectionable, management-related and known in advance, and asks operators to refrain from offering such trades.
The NFL declined to comment on which companies received the letter but said it was sent to operators registered with the Commodity Futures Trading Commission that offer NFL transactions.
Prediction platforms Kalshi and Polymarket have dominated the burgeoning prediction industry in recent months and spurred sports betting companies. FanDuel And DraftKings To also enter the prediction field.
“Sports prediction markets are not currently effectively regulated,” NFL executive vice president Jeff Miller said in a statement. “We will continue to work with the CFTC to take appropriate action to protect both the integrity of the game and the consumers participating in these rapidly evolving markets.”
Some leagues, like the NHL, MLB And MLS The NFL, which has embraced prediction markets, signing operators as partners, has been more cautious.
“There is no greater priority for the NFL than protecting the integrity of our games and the well-being of our players,” the letter said.
In the letter, signed NFL Chief Compliance Officer Sabrina Perel says it’s encouraging that the CTFC recognizes that sports prediction markets should be regulated differently than other futures contracts.
Examples of events that could easily be manipulated by a single person in the letter included whether the kicker missed a field goal, whether the quarterback’s first pass was incomplete, or whether the receiver missed his first field goal.
The list also included non-gaming-related event engagements, such as mentions in broadcasts or fans or celebrities attending games. This type of betting was extremely popular during the Super Bowl; Jeff Bezos would participate.
The prediction platform alone has seen more than $100 million in trading volume, Kalshi CEO Tarek Mansour told CNBC after the February championship game, in response to a question about what halfback Bad Bunny’s first song would be.
The league also objected to “inherently objectionable” bets such as game injuries, fan safety and game misconduct.
The letter concludes by saying the NFL would be happy to meet to discuss “our views on sports prediction markets, including prohibited bookmakers, information sharing with leagues, and responsible betting safeguards” in further detail.
Disclosure: CNBC and Kalshi have a business relationship that includes a minority investment in CNBC.
