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NFL Requests Kalshi and Polymarket to Remove Easily Manipulated Contracts, CFTC to Respect League's Opinion

On March 31, The Block reported that the National Football League (NFL) has sent a letter to prediction market platforms Kalshi and Polymarket, requesting them to "avoid offering contract trading related to events that are easily manipulated or predetermined." Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), stated that the regulatory body would leave ample room for the league's opinions. According to ESPN, the NFL specifically named the following categories of contracts in its letter: single-game events (such as whether a quarterback's first pass is incomplete or if a kicker misses a penalty kick), contracts related to draft positions and roster decisions, as well as contracts related to broadcast mentions or celebrity appearances. The league also raised concerns about markets related to point spreads and player injuries, arguing that these contracts could create incentives for manipulation. In an interview, CFTC Chairman Selig stated, "If a league tells us that a contract is easily manipulated, we will assess the risks involved. The league is well-suited to make these judgments." It remains unclear whether Kalshi and Polymarket plan to adjust their products; The Block has requested comments from both platforms and the NFL. On the legislative front, lawmakers have proposed a bipartisan bill aimed at prohibiting federally regulated prediction markets from offering sports-related contracts, while several states are challenging the legality of these platforms through judicial means. In contrast, earlier this month, Major League Baseball (MLB) reached a partnership with Polymarket and signed an information-sharing and internal risk monitoring agreement with the CFTC, opting for a collaborative rather than confrontational approach.

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