NFL to Supreme Court: Sports Prediction Markets Are Just Gambling in Disguise
The NFL filed a Supreme Court brief supporting New Jersey's fight against prediction market Kalshi, arguing its sports contracts are disguised gambling.Summary
On October 8, 2026, the NFL filed an amicus curiae brief supporting New Jersey's petition in Flaherty v. KalshiEx, LLC, aligning with state gambling regulators against prediction market platform Kalshi. The case turns on whether Kalshi's sports event contracts are federally regulated financial derivatives, as the Third Circuit ruled 2-1 in April 2026, or state-regulated gambling, as the Ninth Circuit found in August 2026 when it backed Nevada — a direct circuit split that makes Supreme Court review likely. The NFL argues these platforms operate as de facto gambling operations benefiting from a consumer-protection vacuum: unlike licensed sportsbooks, they have not banned manipulation-prone micro-bets, player prop markets, and award contracts, nor adopted a minimum user age of 21, despite the league, NBA, and NCAA urging the CFTC to require one. The NFL's July 27, 2026 letter to CFTC Chairman Michael Selig foreshadowed the brief, and the league cited roughly $1.8 billion in NFL-related trading volume on the first Sunday of the 2026 season out of $3.3 billion industry-wide. Observers note the NFL's past reversal after the 2018 Murphy ruling, when it opposed expanded betting, then signed partnerships with Caesars, DraftKings, and FanDuel worth over $270 million annually. A growing coalition backs New Jersey, including the National Council of Legislators from Gaming States, a bipartisan group of states, and 38 attorneys general led by California's Rob Bonta. Kalshi must respond by November 9, 2026, with the Court expected to decide on certiorari no earlier than December; a ruling could reshape sports gambling regulation nationwide.
(Source：Latin Times)