NFL demands strict limits on prediction markets
In a move aimed at safeguarding the transparency of the competition, the National Football League (NFL) has formally requested prediction market operators to remove certain contracts considered "objectionable bets" from their offerings. This request comes at a time of rapid expansion of sports betting in the United States, where the country's most powerful league is attempting to establish a clear boundary between financial entertainment and dynamics that could compromise player well-being or the integrity of on-field results.
The concept of an objectionable bet, as defined by the league, encompasses a series of events that, by their nature, are vulnerable to manipulation or lack a solid ethical basis. These include predictions related to player injuries, inappropriate crowd behavior, or referee decisions. Likewise, the NFL focuses on plays that depend on the individual action of a single person at a specific moment, such as the success of a quarterback's first pass, as well as events that could be predetermined before the clock starts running. The intention behind this letter, originally revealed by CNBC, is to establish effective oversight in a sector that has operated with little regulation until now.
Jeff Miller, NFL Executive Vice President, has been clear in stating that it is imperative to establish limits that protect both the integrity of the sport and consumers in this rapidly evolving ecosystem. Unlike other organizations such as the NHL or MLB, which have opted to sign direct commercial agreements with prediction platforms, the NFL maintains an extremely cautious stance. For the league, the current priority is not business expansion, but rather ensuring that the Commodity Futures Trading Commission (CFTC) recognizes that sports contracts should be treated under different regulations than traditional financial instruments.
The compliance document, signed by director Sabrina Perel, cites specific examples that the league wishes to see eradicated, such as bets on whether a kicker will miss a field goal or whether a quarterback will complete their initial pass. The concern even extends to elements not directly related to the game, such as mentions in the broadcast or the appearance of celebrities in the stands. These practices have gained unusual relevance, especially in high-profile events like the Super Bowl. Tarek Mansour, CEO of Kalshi, has confirmed that these types of exotic questions can generate trading volumes exceeding $100 million, which reinforces the NFL's position on the need to regulate these markets before they affect the essence of the competition.
Tags: United States, USA, NFL, Fanduel, Draftkings, Prediction markets