NFL, CFTC and DOJ join states in cracking down on prediction markets over manipulation and insider-betting

The National Football League has urged prediction-market platforms, including Kalshi and Polymarket, to remove contracts it says are vulnerable to manipulation, flagging wagers tied to single plays, player injuries, roster moves and officiating calls as especially susceptible and warning such contracts could undermine competitive integrity; the league said the Commodity Futures Trading Commission would weigh its concerns in oversight decisions ^[1].

On April 2, the Department of Justice and the CFTC filed suit against the Illinois State Gambling Authority in federal court over state cease-and-desist letters to prediction-market operators, with federal regulators arguing the Commodity Exchange Act gives the CFTC exclusive jurisdiction over swaps, a category they say includes prediction-market contracts ^{[2] [3] [4]}.

Separately, California Governor Gavin Newsom issued an executive order barring state officials and gubernatorial appointees from using nonpublic information to place or assist with bets on prediction-market platforms, a measure that takes effect immediately and covers political, economic and global event contracts ^[5].

Observers say the combined actions—from a major sports league urging contract removals to state executive orders and a federal lawsuit—have focused attention on how prediction markets should be regulated and on the boundary between state and federal authority over crypto-linked contracts ^[3].

Regulators, a major sports league and state executives are intensifying oversight and enforcement efforts around prediction markets; the pending federal case could be pivotal in defining regulatory authority over these products ^{[1] [2] [5] [3] [4]}.