NFL tells Supreme Court: Sports prediction contracts are gambling, not federally regulated “swaps”
October 9 — The National Football League (NFL) filed an amicus brief with the U.S. Supreme Court on October 8, supporting a lawsuit brought by New Jersey regulators against prediction market platform Kalshi.
The NFL argues that sports event contracts offered by platforms such as Kalshi are essentially sports betting, not federally regulated “swaps,” and therefore should not fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), but instead be subject to state gambling regulations.
In its brief, the NFL noted that trading in sports prediction markets has reached substantial levels. On the first Sunday of this season, total trading volume on related platforms reached $3.3 billion, nearly $2 billion of which was tied to NFL games.
The league emphasized that these products are now deeply embedded in the professional sports ecosystem. Allowing them to evade state gambling regulations by being classified as financial derivatives could pose risks to the integrity of sporting events, player protection, and consumer rights.
Kalshi, meanwhile, responded that its sports-related contract markets are financial derivatives subject to the federal regulatory framework, and that states should not restrict their operations under gambling laws.
At present, U.S. circuit courts remain divided on the issue. Some courts have sided with prediction platforms, finding that federal regulation should take precedence, while others have ruled that sports prediction contracts constitute gambling. New Jersey has now asked the Supreme Court to hear the case.
Analysts say that if the Supreme Court ultimately rules that sports prediction contracts constitute gambling, the platforms may still need to apply for gambling licenses in each state and submit to state-level regulation.
But if the Court rules that prediction platforms offer “swap” products regulated by the CFTC, states’ enforcement authority in this area would be limited, and the industry could see clearer rules at the federal level.
#NFL #预测市场
October 9 — The National Football League (NFL) filed an amicus brief with the U.S. Supreme Court on October 8, supporting a lawsuit brought by New Jersey regulators against prediction market platform Kalshi.
The NFL argues that sports event contracts offered by platforms such as Kalshi are essentially sports betting, not federally regulated “swaps,” and therefore should not fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), but instead be subject to state gambling regulations.
In its brief, the NFL noted that trading in sports prediction markets has reached substantial levels. On the first Sunday of this season, total trading volume on related platforms reached $3.3 billion, nearly $2 billion of which was tied to NFL games.
The league emphasized that these products are now deeply embedded in the professional sports ecosystem. Allowing them to evade state gambling regulations by being classified as financial derivatives could pose risks to the integrity of sporting events, player protection, and consumer rights.
Kalshi, meanwhile, responded that its sports-related contract markets are financial derivatives subject to the federal regulatory framework, and that states should not restrict their operations under gambling laws.
At present, U.S. circuit courts remain divided on the issue. Some courts have sided with prediction platforms, finding that federal regulation should take precedence, while others have ruled that sports prediction contracts constitute gambling. New Jersey has now asked the Supreme Court to hear the case.
Analysts say that if the Supreme Court ultimately rules that sports prediction contracts constitute gambling, the platforms may still need to apply for gambling licenses in each state and submit to state-level regulation.
But if the Court rules that prediction platforms offer “swap” products regulated by the CFTC, states’ enforcement authority in this area would be limited, and the industry could see clearer rules at the federal level.
#NFL #预测市场