Prediction Market Controversy Continues as NFL Speaks Out
The NFL has reinforced its stance on prediction markets, clarifying that sports event contracts traded on platforms such as Kalshi or Robinhood will be treated the same as traditional sports betting under league policy. NFL Chief Compliance Officer Sabrina Perel told reporters on Monday that league personnel are prohibited from participating in these markets, which the NFL views as mimicking standard wagering activities.
LISTEN TO THIS ARTICLE:Perel explained that the league is explicitly educating players, coaches, and staff on this issue to prevent confusion. According to her, trading on prediction markets that involve sports outcomes is prohibited conduct for all league employees and athletes.
Related: NBA Warns CFTC of Integrity Risks in Sports Prediction MarketsThe NFL's long-standing gambling policy already restricts wagering on league games, forbids proxy betting through intermediaries, and bars players from gambling at team facilities or participating in daily fantasy football. Training sessions on gambling rules have become mandatory, and the league has even enlisted former players to help convey the message to current personnel this season.
The emergence of prediction markets offering sports contracts has added complexity to the gambling policy landscape. Kalshi and Robinhood have recently expanded their offerings to include football-related event contracts that resemble straight bets and proposition wagers. These developments have forced the NFL to clarify its position, stating that the nature of these markets falls directly under the league's definition of sports betting.
David Highhill, the NFL's VP of Sports Betting, highlighted the challenges the league faces in monitoring compliance with its policies regarding prediction markets. Licensed US sportsbooks operate under established partnerships with leagues, teams, and data firms to ensure integrity and provide consumer protections.
Prediction markets, by contrast, operate in a space with less regulatory clarity, which Highhill described as a vulnerability that could undermine protections in place across regulated betting channels.
More Regulation News
Nevada Targets FanDuel over Prediction Market Launch
The conversation around prediction markets is not limited to the NFL. In Nevada, regulators are examining the implications of financial firms and sportsbook operators entering the space.
The Nevada Gaming Commission recently questioned FanDuel's plans after its parent company, Flutter Entertainment, outlined financial projections that included ventures into event contracts. Commissioner Brian Kolicki requested more details about whether FanDuel intends to expand into sports event contracts as part of its new partnership with CME Group. While the joint venture currently focuses on general event contracts, the potential inclusion of sports markets has raised concern in Nevada.
The state is already engaged in ongoing legal disputes with Kalshi and Robinhood regarding their rights to offer sports event contracts. At the heart of the issue is the definition of what constitutes a sports bet and which jurisdiction—state or federal—has authority over such products.
FanDuel does not currently operate a sportsbook in Nevada and is licensed only to provide information services in the state. Nevertheless, the company's interest in prediction markets has intensified regulatory scrutiny, especially given Nevada's role as the national hub of sports betting oversight.
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