The National Football League has formally urged the Commodities and Futures Trading Commission (CFTC) to implement significant regulatory changes for sports-related prediction markets, advocating for the prohibition of certain event contracts and an increase in the minimum age for participation to 21. These recommendations come as the CFTC is actively engaged in a rulemaking process concerning these burgeoning markets.

In a detailed letter to CFTC Chairman Michael Selig, NFL Senior Vice President Brendon Plack outlined the league’s primary motivations: safeguarding the integrity of sporting events and protecting participants from potentially fraudulent or manipulative behaviors. The NFL specifically targets contracts it deems easily manipulable by a single individual, such as a kicker’s field goal attempt or a quarterback’s first pass. The league also seeks to ban contracts on events that are ‘knowable in advance,’ like the game’s first play, or those deemed ‘inherently objectionable,’ including player injuries. Furthermore, the NFL wants to prohibit ‘mentions’ contracts, where participants wager on specific words broadcasters might utter during a telecast.

To establish robust guardrails, the NFL consistently references state-level gambling regulations as a model. It also recommends that the National Futures Association (NFA) forge agreements with state gaming regulatory authorities to facilitate data sharing and enhance enforcement mechanisms. This move aims to identify and bar individuals who should not be allowed to trade in these markets. While the NFL draws parallels to sports betting, CFTC Chairman Selig has publicly stated his view that prediction markets, including those related to sports, are distinct from traditional gambling, a stance that underlies ongoing jurisdictional disputes between the CFTC and various states.

Beyond contract bans and age restrictions, the NFL proposes a unique certification process for contracts tied to individual player performance or those susceptible to manipulation, moving away from the current self-certification model. The league also advocates for prediction market platforms to collaborate with sports governing bodies to create and enforce a list of prohibited participants, including league employees, to mitigate insider trading risks. Additionally, the NFL seeks to ban margin trading within these markets, citing concerns that allowing uncollateralized contracts could amplify addictive behaviors and increase loss risks for consumers. The rapid growth of these prediction markets has already impacted traditional sportsbook companies like DraftKings and FanDuel, whose parent company Flutter has seen its stock affected.