The NFL is pushing back on the rapid spread of sports-related prediction markets, telling Congress it is “particularly troubled” by futures-style contracts offered nationwide, including in states where sports betting remains illegal. The league submitted testimony to the House Committee on Agriculture as lawmakers examine the Commodity Futures Trading Commission’s oversight role in these markets (written testimony).
The core issue is jurisdiction and guardrails. Prediction markets allow users to trade yes or no outcomes, and the NFL argues they operate outside state gambling regulators’ frameworks, which typically set limits on bet types and monitoring standards. The league also highlighted that prediction markets are available in all 50 states, while legal sportsbooks operate in 39 states plus D.C., creating a de facto national wagering venue without state-by-state controls (all 50 states).
Why it escalated now. The NFL warned volumes could eventually exceed traditional sportsbooks, raising “substantially greater” integrity risks, and cited markets that invited trading on broadcast mentions of phrases like “concussion protocol” or “roughing the passer.” That’s the kind of novelty market regulators usually scrutinize because it can incentivize manipulation or create public distrust, even if actual influence is limited (broadcast phrase trades).
Operators are contesting the framing. A Coalition for Prediction Markets told ESPN the CFTC’s anti-manipulation rules apply, arguing this is more like regulated trading than gambling. Meanwhile, traditional sportsbook brands have signaled interest in launching prediction markets, suggesting competitive pressure is also a driver, not just integrity concerns (coalition response).
If you’re involved in gaming, exchanges, or sports media, expect a regulatory and legal squeeze. The likely next step is clearer CFTC guidance or Congressional direction on what sports event contracts are permissible, and under what consumer protections.
