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NFL demands prediction markets to stop manipulable trading - New York Post

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Simona Stan
NFL demands prediction markets to stop manipulable trading - New York Post
The NFL is moving to slam the brakes on insider trading in prediction markets. The league sent letters to operators such as Kalshi and Polymarket on Sunday, demanding they cease trades on certain events.  In the letters, the NFL specified markets such as announcer comments, celebrity attendance, draft picks, player signings, coach firings, officiating calls, injuries, and fan safety. The league says these types of wagers “can be easily manipulated or determined in advance” and could lead to “unfair and unwanted allegations” against players and staff. “Some people are going to have that information … that they can then share,” NFL executive vice president Jeff Miller told ESPN. “We’re trying to stay as far as we can from some of those sorts of inside information wagers that could exist in this space.” Millions of dollars have already been traded on Kalshi for markets such as what announcers say during games and which celebrities will show up at the Super Bowl — props that are prohibited by traditional sportsbooks. The NFL’s move follows months of discussions with the Commodity Futures Trading Commission (CFTC), which regulates prediction markets. Miller said the regulator values their input despite not having a formal agreement in place with them. MLB has already partnered with the CFTC to share information and monitor markets for manipulation. The NFL seeks to definitively stop insider trading potential in prediction markets. AP “Polymarket welcomes the opportunity to collaborate with leagues across sports to protect the integrity of the games and the fan experience overall,” a Polymarket spokesperson told ESPN. Kalshi declined to comment. The CFTC has recently taken a more permissive stance on prediction markets under new chair Michael Selig. Selig told ESPN that while trading on sports outcomes has always been legal, it’s been disallowed by past administrations. He said the agency will defer to the leagues’ judgment on what markets are susceptible to manipulation. Polymarket says it will collaborate with leagues to protect game integrity. SOPA Images/LightRocket via Getty Images A bipartisan Senate bill introduced last week would ban prediction markets from legislation to bar such platforms from allowing people to bet on sports and casino-style games. State regulators have also taken legal action on prediction market companies, accusing them of offering illegal gambling. The NFL has not yet weighed in on any of the new legislation, with Miller stressing that the league wants stronger safeguards before partnering with prediction markets. “We want to make sure that whatever is being done in this space, we can do our best to protect the integrity of the sport,” he said. Beyond MLB, the NHL, UFC and MLS have also inked partnerships with prediction market operators.
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