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The NFL is urging the Supreme Court to rule on the regulation of prediction markets, arguing in an amicus brief filed Thursday that states \u2014 which already regulate legal sports books \u2014 are better positioned to oversee sports-related contracts \u201cgiven the current landscape.\u201d<\/p>\n
The NFL is supporting New Jersey’s request for the Supreme Court to rule on the governing authority for prediction markets<\/a>, which provide an opportunity to trade \u2014 or wager \u2014 on the result of future events. The Commodity Futures Trading Commission has maintained it has exclusive federal jurisdiction, while states have argued that the array of typically yes-or-no questions is akin to gambling and falls under their purview.<\/p>\n \u201cAbsent the clarity that only this Court can provide, (prediction market) operators will continue exploiting the gap between state and federal regulation, endangering consumers and the integrity of sports events across the country,\u201d lawyers for the NFL wrote.<\/p>\n According to the NFL’s brief, on the first Sunday of this season, more than half of the trading volume on prediction markets \u2014 $1.8 billion out of $3.3 billion total \u2014 was related to the league.<\/p>\n “Any delay from the Court will result in increasing consumer harm and risk to game integrity,\u201d the NFL wrote in its brief.<\/p>\n Kalshi spokeswoman Elisabeth Diana said its top priority is market integrity, and she pointed to its partnerships with the NHL, Major League Baseball and other sports organizations as evidence.<\/p>\n \u201cContrary to the NFL\u2019s statements, the CFTC is actively policing sports-related markets, which are now listed on nearly every U.S. commodities exchange,\u201d Diana said. “The CFTC\u2019s ongoing rulemaking addresses many of the NFL\u2019s supposed concerns. And those rules sit atop the same comprehensive system of federal enforcement that protects trillions of dollars of transactions in U.S. markets.\u201d<\/p>\n A Polymarket spokesperson said the operator \u201cshares the NFL\u2019s commitment to preserving the integrity of the game,\u201d and it is working on “a harmonized federal framework that delivers a stronger, more consistent form of integrity compared to a patchwork of disconnected state laws built for a bygone era.\u201d<\/p>\n Ohio filed a brief on Wednesday urging the high court to side with New Jersey and preserve the power of all states to regulate prediction markets, as they do casino gambling and sports betting. The filing was backed by 38 states, including Republican and Democratic attorneys general from states including Arkansas, California, Illinois, Missouri, New York, South Carolina and Pennsylvania.<\/p>\n Roughly 20 states are involved in litigation over prediction markets<\/a>, and a split has formed between appeals courts, making it more likely that the Supreme Court will take up the issue. The 6th and 9th U.S. Circuit Courts of Appeals have ruled in favor of states seeking to regulate prediction markets, while the 3rd U.S. Circuit Court of Appeals agreed with Kalshi in a ruling earlier this year.<\/p>\n \u201cAs between the two approaches, the NFL believes the Sixth and Ninth Circuits got it right, given the current landscape,\u201d lawyers for the league wrote in their brief.<\/p>\n The NFL also is questioning the CFTC’s enforcement capabilities. In its filing, the league writes that the commission has 543 employees and their responsibilities include a range of derivatives beyond event contracts.<\/p>\n \u201cWithout adequate staff engaged in oversight and enforcement, even the best regulations cannot meaningfully ensure game integrity and consumer protection,\u201d lawyers wrote in the NFL brief.<\/p>\n A message was left by the AP seeking comment from the CFTC.<\/p>\n The NFL has urged the CFTC and prediction markets to adopt a list of prohibited wagers that it feels pose the greatest threats to game integrity, according to the brief, but they have declined thus far. It also has asked the commission to adopt an age limit of 21 for trading on prediction markets, up from the current 18.<\/p>\n Diana said Kalshi has tried to collaborate with the NFL on market integrity, but it has received no response.<\/p>\n ___<\/p>\n Associated Press writer Marc Levy contributed.<\/p>\n ___<\/p>\n See AP\u2019s full sports coverage here<\/a><\/p>\n<\/div>\n