TLDR
- The NFL asked the CFTC to set stricter rules for sports event contracts, including a minimum trading age of 21.
- New York sued Kalshi for $36 billion, arguing its sports markets are illegal gambling.
- The New York Mets signed a deal with prediction market platform Novig one day before the state sued Kalshi.
- A Minnesota judge blocked the state’s ban on prediction markets, letting Kalshi and Polymarket keep operating.
- A Wisconsin judge ruled the state can keep enforcing gambling laws against Kalshi and four other platforms.
The NFL sent a letter to the Commodity Futures Trading Commission this week asking for stronger rules on sports event contracts. The league wants the agency to require traders to be at least 21 years old.
NFL Executive Vice President Jeff Miller called the contracts “innovative” in an interview with Front Office Sports. He also said the league needs more regulatory clarity before deciding how to move forward.
NFL Wants Bans on Certain Bets
The NFL is asking the CFTC to ban micro-bets, player prop bets, and award markets. The league says these types of bets are easier for a single player to manipulate.
The NFL joined the NBA and NCAA in calling for the age requirement. All three leagues have dealt with insider trading cases over the past year.
The NFL said the CFTC’s current draft rules fall short of protecting fans and the integrity of sports. The public comment period on the draft closed on July 27.
New York Sues Kalshi as Mets Sign Deal
New York Governor Kathy Hochul and Attorney General Letitia James announced a lawsuit against Kalshi on Friday. The state is seeking $36 billion in damages.
The lawsuit claims Kalshi’s sports markets meet the legal definition of gambling. It also argues Kalshi avoided taxes that licensed casinos and sportsbooks must pay.
New York has collected about $3.5 billion in tax revenue since legal mobile sports betting began in 2022. Last year the state led the country with a sports betting handle of $26.3 billion.
One day before the lawsuit, the New York Mets signed a deal with prediction market platform Novig. It is the first partnership between a Major League Baseball team and a prediction market exchange.
Mets owner Steve Cohen is also building a casino project with Hard Rock International. That project includes plans for a retail sportsbook.
American University professor Matt Bakowicz said he does not see Cohen’s Novig deal as mixed messaging. He described it as an owner pursuing different business strategies under separate regulatory rules.
CFTC Chairman Michael Selig criticized James and New York in a post on X. He said the state is trying to force a shutdown of prediction markets across the country.
James has clashed with the Trump administration before. A federal grand jury indicted her in October 2025 on bank fraud charges, and a Virginia judge later dismissed the case.
Mixed Rulings in Other States
A Minnesota federal judge issued a preliminary injunction this week that blocked the state’s ban on prediction markets. The ruling came just before the ban was set to take effect on August 1.
Judge Kate Menendez said federal law overrides Minnesota’s state law in this case. Kalshi and Polymarket can keep operating in the state for now.
Two days later, a Wisconsin federal judge ruled the opposite way. Judge William Griesbach denied a request from the CFTC to stop Wisconsin from enforcing its own gambling laws against Kalshi and four other platforms.
Wisconsin’s attorney general said in April that the state wants to shut the platforms down rather than collect financial damages. He has not ruled out seeking money later.
