NFL to prediction markets: Stop manipulative trading.

On Sunday, the National Football League issued requests to platforms like Kalshi and Polymarket, urging them to avoid facilitating transactions related to outcomes susceptible to simple manipulation or pre-determination. These specific requests covered scenarios such as broadcast commentary content, celebrity appearances at matches, and future draft selections.

The league articulated a desire to shield participants in its games from “unjust and unwelcome accusations” stemming from betting activities and speculative markets. It opposed four categories of offerings: those easily influenced by an individual, like missed field goals; those predictable beforehand, such as draft selections, athlete contracts, and coaching terminations; any matters pertaining to refereeing decisions; and subjects deemed “intrinsically offensive,” including player health issues and spectator security.

Many of the league’s protests outlined in the correspondence align with prohibitions it imposes on conventional sports betting sites. However, the NFL additionally voiced apprehension regarding speculation on announcer mentions and celebrity presence, categories not typically provided by sportsbooks. Substantial sums, amounting to millions, were exchanged on Kalshi concerning broadcast commentary and notable attendees at the Super Bowl event.

“Certain individuals will possess such details… which they might subsequently distribute,” remarked Jeff Miller, the NFL’s executive vice president, to ESPN. “Our objective is to maintain maximum distance from forms of insider information-based bets that could emerge within this domain.”

Miller indicated that the dispatch comes after several months of discussions between the NFL and the Commodity Futures Trading Commission (CFTC), the federal entity responsible for regulating prediction markets. The CFTC and Major League Baseball recently formalized an understanding to exchange data and hold periodic meetings to deliberate on market categories perceived as susceptible to manipulation. While the NFL lacks an official pact with the CFTC, Miller stated the league trusts the regulatory body appreciates its perspectives.

Under its new leader, Michael Selig, the CFTC has adopted a more assertive stance regarding permissible market types. Selig conveyed to ESPN his conviction that speculating on athletic results has consistently been lawful, though prior administrations prohibited it. Given sports’ current integration into the prediction market landscape, Selig emphasized the agency’s imperative to collaborate with sports organizations to identify potential points of manipulation.

“Should a sports league inform us that a particular contract is highly vulnerable to manipulation, and an exchange nonetheless attempts to approve it, we will naturally assess the associated risks,” he affirmed. “However, the leagues possess strong capabilities for making such determinations, and therefore, we intend to grant considerable respect to their judgments on these matters.”

Legislation proposed in the Senate recently, with support from both major parties, aims to prevent prediction platforms from facilitating trades that resemble sports wagering. Additionally, these markets are confronting legal challenges from state regulatory bodies asserting that these enterprises are engaged in unlawful gambling operations.

Miller clarified that the NFL has not yet interacted with any of the newly suggested legislative measures. The league’s stance continues to be that prediction markets require stronger safeguards before it would contemplate forming an alliance.

“Our goal is to ensure that any activities occurring within this sector are conducted in a way that allows us to maximally safeguard the integrity of the athletic competition,” he stated.

Major League Baseball, the National Hockey League, the Ultimate Fighting Championship, and Major League Soccer have established collaborations with prediction platforms.