[DigitalToday reporter Chi-gyu Hwang] The NFL (National Football League) has asked Michael Selig (마이클 셀리그), chairman of the U.S. Commodity Futures Trading Commission (CFTC), to strengthen regulation of sports prediction markets, The Block reported, citing a letter obtained by The Closing Line, a prediction-market newsletter.
According to the report, the NFL said the CFTC's recent draft rule on event contracts falls short on integrity and consumer protection.
A screenshot of the letter showed the NFL said protecting game integrity is its top priority and is also key to stable operation of event contracts and protection of traders.
Unlike the NHL and MLB, which partnered with Kalshi and Polymarket, the NFL has consistently called for tighter regulation of prediction markets. In March, it also sent letters to Kalshi and Polymarket asking them to scale back several contract products.
The CFTC withdrew a 2024 regulatory plan centered on banning sports and political event contracts. When state governments sought to regulate prediction markets, it defended them as a federal matter through lawsuits.
It is also drafting new rules to recognize prediction markets as formal financial products. It has shifted from its past stance of restraining prediction markets to supporting their growth.
The Closing Line said the core of the NFL's latest request is to restrict vulnerable markets that can be easily manipulated by one person, hinge on referee discretion or allow outcomes to be known in advance. The NFL is also known to hold that the CFTC should refine definitions of event-based contracts that are not clearly distinguishable from gambling.