NFL Wants Stronger Prediction Market Oversight Before Considering Partnerships

The NFL isn’t rushing to establish partnerships with prediction market operators, opting for a cautious stance focusing on more robust regulations and protection of game integrity.

In a recent interview with CNBC, Commissioner Roger Goodell said the league is continuing dialogue with some prediction markets with a focus on some items those companies can accomplish to potentially establish a relationship with the most valuable U.S. sports league in the future.

While the NHL was quick to establish partnerships with the two largest prediction markets with Major League Baseball (MLB) and several other leagues following suit, the NFL and the NBA have thus far been reluctant to embrace prediction markets, citing gaming integrity concerns.

NFL Wants Solid Regulations

Following the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), the NFL was quick to establish deals with gaming companies, but those corporations are regulated by the states in which they do business.

Prediction markets are regulated at the federal level by the Commodity Futures Trading Commission (CFTC), so those companies aren’t operating unchecked, but it appears as though the NFL wants stronger oversight of the young industry.

“We’ve been really clear about that, and it’s not a surprise, I think, for anybody. We think that there needs to be stronger regulations into the prediction markets,” Goodell told CNBC. “We want to see that to protect the integrity of our game. We want to make sure we’re protecting the consumers that are on those platforms for the NFL.”

With annual revenue of $23 billion and growing, and an average estimated franchise value of as much as $10.36 billion, the NFL has the economic luxury of slow-playing prediction market relationships.

Prediction Markets Should Remove Questionable NFL Contracts

If there’s one thing prediction markets can do to get in the NFL’s good graces, it’s to remove or not consider event contracts the league deems objectionable or vulnerable to manipulation and insider trading. Those include derivatives based on player injuries and referees’ calls, among others.

Prediction market operators can self-certify those event contracts, and if the CFTC doesn’t get involved, the derivatives go live. Last week, Novig announced that it will not offer “easily manipulable, inherently objectionable, officiating-related, and knowable in advance” event contracts on NFL games