The NFL shield logo is displayed on the field during a preseason game between the Los Angeles Rams and Houston Texans at NRG Stadium in Houston on August 24, 2024.
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The NFL is asking prediction market operators to remove certain event contracts from their platforms that the league deems “obnoxious bets.”
In a letter obtained by CNBC, the league outlines examples of event contracts that can be easily manipulated by one person, are objectionable in nature, involve officiating, or have prior knowledge, and asks operators to refrain from offering such deals.
The NFL declined to comment on the companies that received the letter, but said it was sent to businesses registered with the Commodity Futures Trading Commission that offer NFL trading.
Prediction platforms Kalshi and Polymarket have dominated the burgeoning prediction industry in recent months, energizing sports betting incumbents such as: fan duel and draft kings You can enter the prediction space as well.
“Sports betting markets are currently not effectively regulated,” NFL Vice President Jeff Miller said in a statement. “We continue to work with the CFTC to pursue the guardrails necessary to protect both the integrity of the game and the consumers participating in a rapidly evolving marketplace.”
While some leagues like the NHL, MLB and MLS have embraced prediction markets and signed on with operators as partners, the NFL is more cautious.
“There is no greater priority for the NFL than protecting the integrity of the game and the welfare of our players,” the letter said.
In the letter, signed by NFL Chief Compliance Officer Sabrina Perel, she says it is encouraging that the CTFC recognizes that sports-related prediction markets should be regulated differently than other futures contracts.
Examples listed in the event report that could be easily manipulated by one person included whether a kicker missed a field goal, whether a quarterback’s first pass was incomplete, and whether a receiver missed his first target.
The list also included non-game-related event deals, such as broadcast mentions and appearances by fans and celebrities at games. These types of bets were very popular during the Super Bowl, such as whether Jeff Bezos would attend or not.
Karsi CEO Tarek Mansour told CNBC after February’s championship game that the prediction platform alone had more than $100 million in trading volume when asked what halftime performer Bad Bunny’s first song would be.
The league also took issue with “inherently objectionable” wagers, including on-the-play injuries, fan safety and on-play misconduct.
The letter concludes by saying the NFL would be happy to meet to discuss “our views regarding the sports betting market in more detail, including prohibited bettors, information sharing with the league, and responsible gaming measures.”
Disclosure: CNBC and Kalsi have a commercial relationship that includes a minority investment in CNBC.
