The National Football League (NFL) has joined New Jersey officials and several other groups in asking the US Supreme Court to clarify which authorities can regulate sports betting on prediction market platforms. The matter involves firms including Kalshi, which enable people to trade contracts which relate to the outcomes of events.
The NFL says that state gambling regulators should be able to oversee the issue to protect fans as well as the integrity of sporting events. The US Commodity Futures Trading Commission (CFTC) believes that it is the primary authority responsible for regulating the activities of the platforms.
🚨 The NFL is urging SCOTUS to let states regulate prediction apps like gambling. This is big. (1) Football is the top driver of trading volume. (2) The NFL is breaking from other leagues (MLB, NHL) that have prediction partnerships. (3) This pits the NFL against the Trump admin https://t.co/zcTWfgnmwe
— Marshall Cohen (@MarshallCohen) October 8, 2026
In a legal filing, the NFL has argued that it had already raised concerns with the CFTC about how prediction markets deal with sports related contracts but has not received satisfactory responses. The league believes that some of the contracts present risks because the actions of a player, coach or match official may impact an outcome.
As an example, the player may deliberately change his performance, the coach may tweak the team line-up or an official may take a decision that could affect a game. The NFL says that such possibilities pose significant concerns over unfair competition and the protection of consumers.
Kalshi has disagreed with the NFL’s position. The firm says that it has repeatedly tried to work with the league on market integrity but has not received a response. It has also cited partnerships with other professional sports organisations, including Major League Baseball and National Hockey League.
The disagreement has become part of a wider legal battle over whether prediction markets should be regulated at the federal or the state level. One of the federal courts has sided with the view expressed by Kalshi that the CFTC should have exclusive authority while two others have supported the states’ position.
New Jersey has asked the Supreme Court to take up the case. The NFL has urged for the court to act urgently, saying that significant sums are being traded on football-related prediction markets and that waiting may heighten risks to consumers and the games.
The matter has attracted support from several other entities. Thirty-nine US states and the District of Columbia have also filed a legal brief supporting New Jersey. Former CFTC chairman Gary Gensler and former senator Chris Dodd have argued that the law was not intended to strip away the traditional authority of states and tribal governments over gambling.
The CFTC says it has worked with the NFL on its policies and rule-making plans. The Supreme Court has not yet announced whether it will hear the case. Its decision could have a major impact on the way prediction markets are regulated across the United States.
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