The National Football League urged the U.S. Commodity Futures Trading Commission to strengthen its proposed sports prediction market rules in a July 27 letter to CFTC Chair Michael Selig.
Summary
- NFL asked the CFTC to strengthen proposed safeguards for sports prediction markets and game integrity.
- The league supports a minimum trading age of 21 and centralized self exclusion protections nationwide.
- CFTC rules would generally permit contracts tied to final scores, standings, statistics, and advancement outcomes.
- The NFL wants explicit restrictions on insiders using confidential information obtained through league relationships improperly.
- The proposed review must begin within ten days after listing, not before contracts start trading.
The league said protecting the integrity of NFL games remains its highest priority. Although it welcomed parts of the proposal, the NFL argued that the draft rules “fall significantly short” of providing adequate protections for sporting events, market participants and fans. The Closing Line published excerpts from the letter after receiving a copy.
NFL says the CFTC leaves vulnerable contracts exposed
The NFL wants the CFTC to restrict contracts that one person can easily influence or whose outcomes may be known privately before settlement. Its examples include roster decisions, coaching choices, officiating judgments and other events controlled by a limited number of identifiable people.
The CFTC’s proposed framework already draws distinctions between different sports products. Contracts based on final scores, win and loss records, tournament advancement and broader performance statistics would generally weigh against prohibition. The Commission believes those markets can use objective information and support price discovery.
By contrast, the proposal says contracts tied only to player injuries, officiating decisions, specific actions during games, altercations or children’s sports would probably be contrary to the public interest. The CFTC cited manipulation, confidential medical information and harm incentives among its concerns.
The ten day review begins after contracts start trading
The NFL also challenged the proposed timetable for examining new event contracts. The rule would require the Commission to begin a public interest review within ten days after a contract is listed. It would not create a ten day approval period before trading begins.
Under the normal self certification process, an exchange can list a contract on the next business day after submitting its filing. The NFL argued that manipulation risks or integrity concerns may not become visible within the first ten days. It also asked the Commission to confirm that existing contracts must comply with the final rule rather than receiving automatic protection because they were listed earlier.
Once the Commission starts a formal review, the process can run for as long as 90 days. The exchange may agree to an extension. The CFTC can request that trading stop during the review, but the proposed rule does not require an automatic suspension.
NFL wants stronger insider and consumer controls
The league asked the CFTC to state clearly that trading sports contracts with confidential information obtained through a duty to a team, league or governing body can violate federal commodities law.
The NFL also wants mandatory lists covering players, coaches, officials, medical staff and other people with privileged access. It argued that individual platforms should not bear sole responsibility for identifying prohibited traders. The CFTC proposal already considers the misuse of material nonpublic information, but it does not require the specific league lists requested by the NFL.
Consumer protections form another part of the league’s request. The NFL supports a minimum participation age of 21, centralized self exclusion systems, deposit and loss limits, cooling periods, activity notices and tighter advertising standards. It also repeated its opposition to margin trading for sports contracts.
CFTC now weighs comments as the legal fight widens
The public comment period for the proposed Rule 40.11 amendments closed on July 27. The CFTC has not announced a deadline for issuing a final rule. The proposal has also drawn objections from state officials, tribal groups, consumer advocates and former regulators who dispute whether federal derivatives law should govern products that resemble sports wagering.
Separately, the CFTC issued a July 24 advisory telling exchanges to stop using vague template filings for large groups of event contracts. Exchanges should instead provide specific settlement terms, data sources and legal analyses that allow regulators to assess each proposed product.
The NFL’s position differs from approaches taken by some other leagues. Major League Baseball named Polymarket its official prediction market exchange and signed an information sharing agreement with the CFTC in March. MLB’s framework restricts markets involving individual pitches, manager decisions and umpire performance.
The National Hockey League also signed a partnership with Kalshi in 2025. The NFL has not announced an equivalent commercial agreement and continues to press for stronger federal restrictions.
As crypto.news previously reported, the rulemaking also faces opposition from officials across 44 states and territories. Courts remain divided over whether federal oversight prevents states from applying gambling laws. A Minnesota judge recently blocked a direct state ban, while courts elsewhere have allowed restrictions on sports contracts to remain.
The next step rests with the CFTC. Its final rule will determine whether the NFL’s requested age limit, insider lists, consumer controls and wider review powers become mandatory requirements or remain voluntary protections adopted by individual platforms.
