NFL Urges Supreme Court to Give States Authority Over Prediction Markets.
The National Football League (NFL) has asked the US Supreme Court to allow states to regulate prediction markets linked to sports. The league argues that state oversight can protect sports integrity and reduce the risk of insider trading and other improper practices.
In a recent court filing, the NFL supported New Jersey’s appeal against Kalshi Inc. The platform offers contracts linked to future events. The dispute centres on whether these contracts are financial products or sports bets.
New Jersey officials argue that they resemble sports wagers and should follow state gambling laws.
However, prediction market operators maintain that their products are financial instruments regulated by the Commodity Futures Trading Commission (CFTC).
The case highlights a dispute over regulatory authority between federal agencies and individual states. Federal regulators oversee financial derivatives, while states generally regulate sports betting within their borders.
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The key question is whether federal commodities law overrides state gambling restrictions when prediction markets offer sports-related contracts.
The NFL’s position aligns with New Jersey’s efforts to maintain its regulatory authority. In early September, the state appealed to the Supreme Court after the US Court of Appeals for the Third Circuit ruled against it. In a 2–1 decision, the appeals court indicated that federal commodities law could take precedence over state rules.
The Supreme Court’s handling of the case could affect prediction market operators, sports leagues, and gambling regulators across the United States.
