The NFL, which receives the highest volume of betting in the United States, is taking a firm stance against prediction markets, manifesting in its recent effort to eliminate specific betting types from platforms like Kalshi and Polymarket. While leagues such as MLB and the NHL foster partnerships with prediction markets, the NFL has reiterated its position in a letter sent on Thursday to various operators as it prepares for the kickoff of its season on September 9.
In the letter, NFL Chief Compliance Officer Sabrina Perel expressed notable concerns regarding the continued presence of certain categories of bets that were flagged months ago. "It is deeply concerning that bets within the objectionable categories that we identified months ago have been and continue to be listed as contracts on exchanges," she stated.
Perel provided an extensive list of market types that she insists should be excluded, which spans nearly a full page. The categories of wagers include:
1. **Easily Manipulable by a Single Person**: This category involves both game-related and non-game-related bets.
2. **Inherently Objectionable**: These include bets on player injuries, player participation in games, and fan safety, among other concerns.
3. **Officiating Related**: This pertains to bets regarding officiating decisions and actions, including penalties and replay results.
4. **Knowable in Advance**: Bets that cover predictable outcomes like the first play of a game or roster decisions.
Perel instructed designated contract markets (DCMs) to respect the expertise of the NFL in safeguarding the integrity of its games. She referenced comments from CFTC Commissioner Michael Selig, who recognized that leagues are best equipped to identify contracts that should be prohibited, emphasizing the importance of maintaining public confidence in the markets.
The letter emphasized that the ongoing listing of these objectionable contracts could jeopardize the underlying integrity of NFL games and poses risks to players, coaches, and officials. Perel urged DCMs to take decisive action against these types of bets, deterring any further offerings in the specified objectionable categories.
This isn't the NFL's first address to prediction market operators regarding these issues; a similar letter was sent months prior with minimal changes observed in the market. The only notable adjustment came with Kalshi's recent removal of certain injury-related bets in response to the CFTC's guidance.
Ultimately, the NFL is pressing for greater compliance from prediction markets to protect both its integrity and the integrity of the betting environments surrounding its games.
