NFL Cautions That Prediction Markets Resemble Sports Betting
The NFL has clarified that it considers sports prediction markets the same as traditional sports betting, raising concerns about integrity and compliance.
During a media call held on Aug. 25, league officials confirmed that NFL players and personnel are banned from using platforms such as Kalshi, Polymarket, and Robinhood to trade on sports events.
The concerns stem from the fact that prediction markets lack many of the regulatory requirements typically imposed on sportsbooks. These include information sharing with leagues, integrity monitoring, and restrictions on markets vulnerable to manipulation.
Users on prediction market exchanges can place trades tied to things such as game results, margins of victory, overall scoring and individual player achievements.
“On the policy side, our view is that these platforms mimic sports betting, and they are covered as prohibited conduct under our policy,” said Sabrina Perel, the NFL’s CCO. She added that the NFL is actively undergoing education for both players and officials about the ban.
Kalshi launches NFL markets
Despite numerous legal challenges, Kalshi has continued to expand its sports-related offerings. Earlier this month, Kalshi informed the Commodity Futures Trading Commission that it would begin listing event contracts. These products enable users to trade on player touchdown totals, point spreads, and game totals, closely mirroring prop bets offered by traditional sportsbooks.
This new launch of contracts follows a particular legal setback, after a federal judge in Maryland ruled that Kalshi must comply with state gambling laws. The company has appealed the ruling and continues to operate while awaiting a decision from the 4th Circuit. At least five states have sued Kalshi, although the company had previously won court challenges in Nevada and New Jersey.
Kalshi spokesperson Sara Slane said that the platform’s new offerings are currently limited to football. “This is a natural progression in our offerings, and clearly there’s huge consumer demand,” she said.
Tribal Nation sues Kalshi for illegal sports betting
Legal pressures on Kalshi also manifested on Aug. 20, when the Ho-Chunk Nation sued the company in the Western District of Wisconsin.
The tribal nation pleaded a violation of the Indian Gaming Regulatory Act, accusing Kalshi and Robinhood of conducting illegal and unregulated sports gambling on Indian lands.
The lawsuit argued that Kalshi’s event contracts blur the lines between “minimization and allocation of market risk” and unregulated sports gambling. The Ho-Chunk Nation claims that the platform undermines tribal sovereignty by diverting business away from casinos. This would be in direct violation of the Indian Gaming Regulatory Act, which grants tribes the right to be the primary beneficiaries of gaming operations.
In addition to its illegal gambling claims, the Ho-Chunk Nation’s complaint accused Kalshi and its partner, Robinhood, of false advertising. The lawsuit alleged that the companies misrepresented Kalshi as the first legal online sports betting platform, thereby misleading users and harming tribal gaming revenues.
The tribal nation is seeking a ban on Kalshi’s activities, as well as monetary compensation for lost revenue.
