The National Football League (NFL) has said that prediction markets are “gambling” and not “swaps” as companies such as Kalshi and Polymarket claim.
The professional football league made the statement in a brief it filed related to a case that’s before the U.S. Supreme Court.
The NFL is supporting the State of New Jersey in its assertion that prediction markets are gambling and should be regulated alongside casinos and other gaming companies.
In a brief filed with the Supreme Court, the NFL argues that contracts offered by Kalshi and Polymarket are not financial swaps subject to oversight by the federal Commodity Futures Trading Commission (CFTC).
The comments from the National Football League are a blow to Kalshi and Polymarket, which claim that their platforms are about trading and should be exempt from state regulations.
Prediction markets enable people to bet on the outcomes of real-world events, ranging from sports to elections and the weather.
The case before the Supreme Court is expected to determine whether individual U.S. states, such as New Jersey, can regulate prediction markets under their gambling laws.
The NFL’s comments are seen as especially damaging to the prediction markets as professional football games are one of the most popular offerings by Kalshi and Polymarket.
Nearly $2 billion U.S. was wagered on prediction markets during the first Sunday of the current NFL season tat began in September.
Both Kalshi and Polymarket saw record betting on their platforms during the World Cup soccer tournament this June and July.
The NFL has asked the Supreme Court to hear the case involving New Jersey, arguing that the growing split among courts has created regulatory uncertainty for the league.
It is not known whether the U.S. Supreme Court will agree to take-up New Jersey’s case against Kalshi and other prediction markets.
Both Kalshi and Polymarket are privately held companies and their stocks do not trade on a public exchange.
