NFL Challenges Billion-Dollar Platform: Could Sports Contracts Be Classified as Gambling?
The NFL has asked the U.S. Supreme Court to review a case, arguing that Kalshi’s contracts based on sporting events should be subject to gambling regulations.
According to The Block, the NFL filed a brief in Flaherty v. KalshiEX in support of New Jersey regulators. The league argues that Kalshi and similar platforms cannot use federal derivatives regulations as grounds for exempting their sports contracts from state gambling oversight.
The dispute concerns whether sports predictions can be offered across the United States under the oversight of the Commodity Futures Trading Commission (CFTC). The ability of states to enforce their own gambling laws could affect where and under what conditions these platforms operate. The Supreme Court has not yet decided whether to hear the case.
Why is the NFL objecting?
The league’s main objection is that sports contracts cannot be treated the same way as financial derivatives known as swaps. According to the NFL, traditional swaps are used to offset existing financial risks, whereas sports contracts encourage participants to bet on the outcomes of games in which they have no economic interest.
The scale of the issue is also substantial. According to figures provided by the NFL, of the $3.3 billion in volume generated in prediction markets on the first Sunday of the season, about $2 billion was tied to league events. Kalshi’s total trading volume had exceeded $173 billion by the end of August 2026.
The NFL considers contracts tied to specific moments in games and player injuries vulnerable to manipulation. The league is calling for limits on certain contracts, higher age limits, and increased information sharing between platforms and leagues to address the risk of insider information.
Kalshi pushes back as other leagues form partnerships
Kalshi argues that sports markets are already regulated by the CFTC and that federal oversight is more consistent than rules that vary from state to state. The company says it prioritizes market integrity and points to its partnerships with other sports leagues.
The NFL’s position differs from that of some major leagues. MLB selected Polymarket as its sole partner in prediction markets, while the NHL signed licensing agreements with both Polymarket and Kalshi.
The NFL is asking the Supreme Court to step in, saying disagreements among courts are increasing uncertainty.