NFL Backs State Oversight of Prediction-Market Sports Betting

The NFL urged the Supreme Court to let states regulate sports betting offered through prediction markets, opposing the Commodity Futures Trading Commission’s claim of exclusive federal authority over the contracts.

In a friend-of-the-court filing, the league argued that platforms including Kalshi and Polymarket should face state gambling oversight when they offer wagers tied to sports outcomes. The NFL said state regulators provide stronger safeguards than the CFTC in areas affecting game integrity and consumer protection.

The league highlighted risks including users under 21 placing bets, wagers on individual player actions that could be manipulated and insufficient federal staffing to oversee the activity.

Former SEC Chair Gary Gensler, former Sen. Chris Dodd and multiple state and tribal governments also support state authority. They argue the Dodd-Frank Act did not give the CFTC power to displace state gambling regulators.

The dispute centers on whether sports contracts offered by prediction markets are financial products under federal commodities law or gambling products subject to state rules.