NFL Pens Letter to CFTC Requesting Prediction Market Changes

• According to CNBC, the NFL requested several changes to the Commodity Futures Trading Commission regarding sports event contracts
• The league penned a letter requesting certain contracts be banned and raising the minimum age to trade in the markets
• NFL requests were in line with recent public comments made by other professional leagues regarding prediction market

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The NFL is making its opinion heard regarding prediction markets and certain sports event contracts.

According to a recent report from CNBC, NFL Senior Vice President for Government Affair and Public Policy Brendon Plack wrote a letter on behalf of the league to the Commodity Futures Trading Commission (CFTC), requesting certain football sports event contracts be prohibited and the minimum age for trading be raised to 21.

The NFL’s requests were in line with recent public comments submitted to the CFTC by professional sports leagues and official players unions regarding proposed rules for sports-related event contracts.

Protecting Integrity of Sports

Davis Giangiulio of CNBC reported Plack wrote the letter to CFTC Chairman Michael S. Selig, requesting the chairman take the rule changes into consideration in order to protect “the integrity of the sporting event to which the prediction contracts relate.”

In the recommendations, the NFL requested certain sports event contracts regarding its matchups be prohibited that could easily be manipulated, including certain plays that can be influenced by one athlete, such as a missed field goal or extra point. Additionally, the league requested sports event contracts based on events that could be known in advance, such as what type of play a team will run in its first possession of a game, or those based on injuries also be prohibited.

The league also suggested banning contracts based on certain words or phrases said by an announcer during a broadcast.

Plack noted the CFTC should look towards state regulations regarding sports betting as a model for potential markets. To fall in line with state markets, he also suggested the CFTC raise the minimum age of sports event contract trading to 21, up from its current age requirement of 18.

The NFL’s suggestions were similar to those submitted to the CFTC by MLB, the NBA, PGA Tour, and several official players associations when the commission opened itself to comments regarding rule changes for the prediction markets. The CFTC accepted public comments through April 30 on the markets.

Leagues Have Their Say

The NBA, MLB, PGA Tour, NFLPA, MLBPA, NBPA, NHLPA, and MLSPA unions all submitted public comments to the CFTC regarding prediction markets. Much like the NFL, the leagues and players associations requested additional safeguards in the markets to protect the integrity of their sports, which several also requested the age of participation be raised to 21.

Dan Spillane, Executive Vice President and Assistant General Counsel, League Governance & Policy, outlined the NBA’s suggestions in a four-page letter submitted to the CFTC on April 30.

Among its suggestions to the CFTC, the NBA requested designated contract markets (DCMs), such as Kalshi and Polymarket, be required to prohibit athletes, game officials, and league personnel from trading contracts on their platforms, similar to current restrictions in place on online sports betting platforms.

It also suggested raising the legal age for the markets to 21.

Quest Meeks, Senior Vice President & Head Counsel, Policy, Integrity & Compliance, submitted comments to the CFTC on behalf of MLB, supporting an advisory asking for DCMs to engage in “pre-self-certification communications” with relevant sports leagues and consult with league integrity standards before listing a particular sports event contract.

Meeks reported MLB also strongly supports the advisory for DCMs to fully cooperate with any league-run investigations into potential manipulation or insider trading investigations. The league also emphasized that DCMs should established information-sharing agreements with professional leagues themselves, not just third-party integrity monitoring organizations.

The MLB also encouraged the CFTC to require all DCMs intending to list sports event contracts have an information-sharing agreement in place with the relevant league.

Andy Levinson, SVP, Tournament Administration, of the PGA Tour wrote to the CFTC. Sports event contracts tied to PGA Tour events, he said, raises unique integrity, consumer protection, and public interest concerns that warrant “careful consideration.”

The PGA Tour encouraged the CFTC to require that all tour sports event contracts be settled exclusively with official PGA Tour data. Additionally, the PGA Tour encouraged the CFTC to require “robust integrity safeguards” for sports event contracts, establish effective know-your-customer standards, establish anti-harassment measures for the safety of its athletes, and also to increase the minimum age to trade sports event contracts to 21.

The NFLPA, MLBPA, NBPA, NHLPA, and MLSPA unions submitted a joint letter to the CFTC, urging increased protections, safety, and anti-harassment measures for the athletes they represent.

Similar protections should be afforded to athletes from DCMs as sports betting operators provide every season.

Protecting the safety of athletes and members of their family is the first priority of the players associations, the groups noted. Prediction market rulemaking for sports event contracts should include the following, at a minimum:

• Prohibition on sports event contracts based on a “negative” outcome that can be manipulated by a single individual
• Establish easy process to petition the CFTC to disallow and remove prohibited or problematic contracts
• Create a list of bad actors who are prohibited from particpating in event contracts
• Requiring all sports venues to enact and enforce specific fan conduct policies that prohibit prediction market-related harassment with significant penalties for violators

Additionally, the associations called for a CFTC ban on unauthorized use of non-public information and data relating to athletes’ health and performance.