A call for a prediction markets crackdown has intensified as sports leagues, casino operators, and lawmakers push back against federal regulatory proposals. The NFL and the Casino Association of New Jersey submitted comments urging the U.S. Commodity Futures Trading Commission to block financial platforms from offering sports event contracts. Traditional gaming companies argue that federally regulated derivatives platforms such as Kalshi and Polymarket bypass state gambling laws, threatening established state and tribal regulatory authority across the country.
The American Gaming Association estimates that state governments have lost more than $1 billion in tax revenues due to the expansion of federally listed event contracts. Industry representatives emphasize that commercial casinos pay millions in licensing fees, regulatory costs, and state taxes to operate legally, while prediction market operators avoid those stringent state obligations.
The NFL warned the federal agency that draft rules fall significantly short of protecting sports integrity. The league asked regulators for a prediction markets crackdown to prohibit contracts involving events easily manipulated by one person or dependent on insider knowledge, such as player injuries, play calls, roster choices, or officiating decisions. The league also opposed the proposed 10-day review period for newly listed contracts, citing rapid growth from 1,600 daily contracts in April 2025 to 162,000 in April 2026.
Former senator Chris Dodd, co-author of the landmark Dodd-Frank Act, also challenged the proposal alongside tribal leaders and state regulators. Opponents contend that allowing commodities platforms to list sports outcome contracts creates a national gambling system without authorization from Congress.
State sovereignty remains a central focal point. Following a 2018 U.S. Supreme Court decision, more than 66% of states legalized sports betting. However, legal counsel for Atlantic City casinos noted that states like California and Texas explicitly ban sports betting. Opponents argue that federal inaction would permit sports wagering nationwide, overriding local laws and undermining tribal and state revenues used to fund public programs. As opposition mounts, leagues and gaming operators continue to demand a strict prediction markets crackdown to protect state authority, tax revenues, and competitive sports integrity.
