NFL Urges CFTC to Strengthen Prediction Market Rules to Protect Game Integrity

The National Football League (NFL) is urging the Commodity Futures Trading Commission (CFTC) to further tighten its proposed rules governing sports prediction markets, arguing stronger safeguards are needed to protect the integrity of the game.

The CFTC issued a 267-page Notice of Proposed Rulemaking (NPRM) on June 10, following initial input from professional sports leagues like the NFL, National Basketball Association (NBA), Major League Baseball (MLB), National Hockey League (NHL), Women’s National Basketball Association (WNBA) and the National Collegiate Athletic Association (NCAA).

NFL Pushes For Changes

In a seven-page letter addressed to CFTC Chairman Michael Selig on July 27, the NFL’s Senior Vice President, NFL Public Policy and Government Affairs, Brendon Plack, said, “While the Proposed Prediction Market Rulemaking contains several productive proposals, it must be strengthened in key areas.

“It is surprising that further common-sense integrity and consumer protection measures provided in the Prior League Comment Letter were not adopted.”

Player Props Under Fire

Prediction markets, specifically those around player props and micro-markets, pose an integrity risk, Plack said in his letter, for example, those contracts around player performance or officiating. 

Rather than banning prediction markets entirely, the NFL urged the CFTC to prohibit contracts that it says are susceptible to manipulation. 

“These contracts include those which are easily manipulable by a single person, are inherently objectionable, depend on discretionary officiating choices, or which are known or knowable in advance of settlement,” said Plack. “Players, referees, and coaches could likely be threatened and harassed as a result of objectionable contracts.”

Integrity Safeguards Requested

“Knowable in Advance” contracts can threaten the integrity of games, such as those tied to the first play, coaching decisions, or roster or personnel decisions, he said. The NFL has asked that a pre-approval process be established for certain classes of contracts. 

The NFL also wants the minimum trading age for federally regulated prediction markets raised to 21.

“As we noted in the Prior League Comment Letter, the vast majority of states which have legalized sports betting require that participants be 21 years of age or older,” said Plack in the letter. “We strongly encourage that the Commission impose a minimum age limit of 21 years of age for trading in sports event contracts.”

Minimum Age Debate

Prediction markets need stronger integrity monitoring, Plack said, such as suspicious wagering monitoring, cooperation during investigations, reporting unusual trading patterns, and identity verification, mechanisms that regulated sportsbooks have spent years developing. A league-specific prohibited bettors list needs to be established. 

Plack’s July 27 letter follows a previous letter from the NFL to the CFTC in May, also requesting that certain football contracts be prohibited from prediction markets and that the minimum age be raised to 21.

The NFL critique comes at a time when pro sports leagues like MLB and the NHL have chosen to work with prediction markets and forge marketing partnerships. 

Prediction Market Partnerships

The NFL and NBA have not, although the NBA is in talks with prediction market companies like Polymarket about a potential marketing and official data/licensing partnership, provided there is sufficient regulatory oversight and integrity safeguards.

“As noted in the Prior League Comment Letter, the NFL and other sports leagues and governing bodies must be given a defined pathway to request emergency review and suspension of any sports event contract or class of contract upon submission of credible evidence of actual or potential integrity compromise,” said Plack in the letter.

Certain markets need to be suspended during the review process, he added.