NFL Warns Prediction Markets to Stop Offering 'Objectionable' Contracts

Richard Janvrin
By: Richard Janvrin
Legal
NFL Warns Prediction Markets to Stop Offering 'Objectionable' Contracts

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Key Takeaways

  • The NFL sent a letter to prediction market exchanges outlining categories of contracts it considers objectionable
  • News Insights 2
  • News Insights 3

According to Dan Bernstein of Sportico, the NFL sent a letter to all prediction market exchange operators on Thursday about "objectionable" wagers/trades. NFL Chief Compliance Officer Sabrina Perel sent the letter. Both Polymarket and Kalshi had markets on whether certain players would play this season, but they removed them

NFL Outlines Prediction Market Contracts It Opposes

In the letter, Perel reiterated a message from March that the NFL's top priority is protecting the integrity of the game and also players' well-being. 

“It is deeply concerning that bets within the objectionable categories that we identified months ago have been and continue to be listed as contracts on exchanges,” Perel wrote.

The letter also mentions proposed rulemaking set forth by the Commodity Futures Trading Commission, which states that prediction markets should consult with leagues before posting certain contracts. In fact, CFTC Chair Michael Selig said that “the leagues are very well-positioned to make those calls.”

In the letter, the league is asking for these platforms to “refrain from offering objectionable bets” and broke down specific categories: 

"The League requests that all DCMs refrain from offering contracts in the following categories:

  • Easily Manipulable by a Single Person (game related and non-game related)
  • Inherently Objectionable
  • Officiating Related
  • Knowable in Advance

"Examples of contracts in these categories include, but are not limited to, the following:

Easily Manipulable by a Single Person

  • Game Related
    • will a kicker miss a field goal
    • will a quarterback’s first pass be incomplete
    • will a receiver’s first target be incomplete
    • will a running back rush for fewer than X number of yards on 1st rushing attempt
  • Non-Game Related
    • broadcast mentions
    • fan / celebrity attendance

Inherently Objectionable:

  • player injuries, including whether certain players will compete, when a player’s next game will be, and whether a player will compete in every week of the regular season
  • fan safety
  • player misconduct

Officiating Related:

  • timing, number or types of penalties
  • officiating actions
  • replay results
  • officiating assignments

Knowable in Advance:

  • the first play of the game
  • roster / personnel decisions (e.g., which players will start a game, which team will a player sign with, etc.)
  • who will be traded/hired or fired (including during the offseason)
  • live pick-by-pick contracts on who will be drafted
  • coaching decisions"

NFL Says Contracts Could Threaten Game Integrity

Last month, though, Kalshi and Polymarket both offered certain contracts that wouldn't fit these criteria and were based around injury status. Both platforms eventually pulled them, but still, they posted them for a little while. 

“Continuing to list these objectionable contracts threatens the underlying integrity of our games and creates significant risks for our players, coaches, and officials, as well as for those participating on your exchanges,” Perel wrote. “It is imperative that DCMs take further action to remove any objectionable bets.”

As of now, the NFL doesn't have any partnerships with prediction markets, but it re-upped deals with DraftKings Sportsbook, FanDuel Sportsbook, and Fanatics. Both DraftKings and FanDuel have prediction market platforms. 

Richard Janvrin is a graduate of the University of New Hampshire. He started writing as a teenager before breaking into sports coverage professionally in 2015. From there, he entered the iGaming space in 2018 and has covered numerous aspects, including news, reviews, bonuses/promotions, sweepstakes casinos, legal, and more.

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