NFL Asks Supreme Court to Take Up Prediction Market Case, Citing Integrity Risk
In an amicus brief backing New Jersey's petition, the league says billions will be bet on its games through prediction markets each season and that federal appeals courts are split on whether states can regulate them. Kalshi has until Nov. 9 to respond.
The NFL filed an amicus brief Thursday urging the U.S. Supreme Court to hear New Jersey's challenge to federally regulated prediction markets offering sports contracts. "Billions of dollars will be bet on NFL games through prediction markets each season, and any delay from the Court will result in increasing consumer harm and risk to game integrity," the league wrote.
What is the dispute?
Whether states can apply their gambling laws to prediction markets such as Kalshi, which operate under the federal Commodity Futures Trading Commission. The 3rd Circuit barred New Jersey from enforcing its laws against Kalshi, while the 9th Circuit ruled the other way in a Nevada case, finding that sports contracts fall under state law. New Jersey asked the Supreme Court in September to resolve the split, and attorneys general from 39 states and Washington, D.C., have filed in support.
What does the league object to?
Specific contracts it says threaten game integrity, and the CFTC's handling of them. "The Commission's failure even to reference such objectionable contracts that the NFL identified months ago is deeply concerning and creates significant risks," the brief says. The CFTC responded that "it's unfortunate the NFL declined to sign an MOU with the CFTC which would've provided the league the ability to better discuss, cooperate." On the season's opening Sunday, NFL contracts accounted for $1.8 billion of $3.3 billion traded on prediction markets. Kalshi's response is due Nov. 9, and a decision on whether to hear the case is not expected before December.
Sources
- ESPN: NFL asks U.S. Supreme Court to take up prediction market case
