NFL asks Supreme Court to settle prediction market oversight

The NFL has asked the U.S. Supreme Court to resolve who should regulate sports contracts on prediction markets. The league supports states that regard the contracts as sports gambling.

In an amicus brief, the NFL backed a September petition from New Jersey's attorney general. The league argued that Sixth and Ninth Circuit rulings correctly distinguished sports wagering from financial swaps. It wants the court to clarify regulatory authority before the professional football season ends in January.

Prediction markets operate under the federal Commodity Futures Trading Commission, or CFTC. At least 10 states, however, have taken legal action against platforms, arguing that their sports contracts should be subject to gambling laws.

An NFL source told CBS News that the league had sought safeguards against insider trading and manipulation, as well as an increase in the minimum participation age from 18 to 21. The source said those measures had not been adopted. The league also questions whether the CFTC has sufficient resources to oversee sports betting.

Kalshi counters that the CFTC already polices sports markets and that its rulemaking addresses many of those concerns. Polymarket says it has advanced surveillance tools and is working with the CFTC and the Securities and Exchange Commission on regulation.

CFTC spokesperson Brooke Nethercott said the agency had discussed its priorities with the NFL. She expressed regret that the league declined to sign a memorandum on cooperation and information sharing. The NFL filing does not mean the Supreme Court has agreed to hear the dispute or decided it.