NFL argues Kalshi prediction market contracts are gambling, not swaps

prediction market contracts — The National Football League (NFL) has urged the U.S. Supreme Court to classify contracts from prediction market platform Kalshi as illegal gambling, not regulated financial swaps.

The league filed an amicus brief supporting New Jersey’s petition for the high court to review a lower court’s decision. The NFL argues that Kalshi’s event contracts, which allow users to speculate on sports outcomes, constitute gambling under federal law and should not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

This legal challenge centers on whether prediction markets for real-world events are legitimate financial instruments or unlicensed betting. The NFL contends that allowing such markets would threaten the integrity of its games and conflict with federal sports betting prohibitions.

The Supreme Court’s decision on whether to hear the case could have significant implications for the regulatory status of event-based prediction markets and the CFTC’s authority over novel derivative products.