The National Football League has filed a brief asking the U.S. Supreme Court to take up a case about who should regulate sports contracts sold on prediction markets, CoinDesk reported. The league sided with states that want their own gambling laws to apply to these platforms.
Lower courts are divided. One federal court agreed with Kalshi that the Commodity Futures Trading Commission (CFTC) should be its only regulator, while two others backed the states. New Jersey has asked the Supreme Court to settle the question. Former CFTC and SEC chair Gary Gensler and former senator Chris Dodd, a co-author of the Dodd-Frank Act, also filed briefs supporting the states.
In its filing, the NFL said the CFTC has not answered its concerns about game integrity. It argued that federal oversight allows bets that one player's choices could manipulate, lets people under 21 take part, and lacks the staff to police the markets as closely as state regulators do.
Kalshi disputed that picture. Spokesperson Elisabeth Diana said the company had repeatedly tried to work with the NFL on market integrity without a response, and noted that it has partnerships with Major League Baseball, the National Hockey League and other leagues. The CFTC said it has engaged with the NFL from the start and called it unfortunate that the league did not reach an arrangement with the agency.
Why it matters for beginners
Prediction markets let people trade contracts on whether an event will happen. A Supreme Court ruling could decide whether sports contracts on these platforms are treated as financial products under one federal regulator or as gambling under state law, which would affect who can use them and where. Until the court acts, the rules can differ from state to state, so check what is allowed where you live, and remember that an event contract can lose its entire value.
Source
Finvane summary of reporting by CoinDesk. Facts and figures come from the original report; the wording is ours.
Read the original report: NFL joins pushback against prediction markets as U.S. Supreme Court asked to act ↗For education only, not financial advice. Crypto assets are volatile and you can lose money.