NFL files Supreme Court brief urging review of Kalshi sports contracts case

The National Football League has urged the US Supreme Court to take up a dispute over whether federal derivatives law overrides state sports betting rules for event contracts traded on prediction markets. Its amicus brief in Flaherty v. KalshiEx, LLC (No. 26-299) is dated 8 October 2026.

The filing supports the petitioners and says the Sixth and Ninth Circuits were right; the outcome could decide which rulebook operators and affiliates in the segment have to follow.

What happened

The case reaches the Court as a petition for certiorari against a Third Circuit decision. According to the brief, the Third Circuit sided with Kalshi, finding that its sports-related event contracts are swaps traded or executed on a designated contract market and that field preemption applies. The brief says the Sixth Circuit (decision of 25 September 2026) and the Ninth Circuit (decision of 28 August 2026) squarely disagreed with the Third Circuit.

The league says the Sixth and Ninth Circuits were right. Its legal argument is that "swap" in Dodd-Frank covers only instruments used to hedge existing risk, not wagers that mainly create risk for gambling purposes. It also argues that a broad reading raises Commerce Clause and major-questions issues.

The brief also sets out the league's integrity case against the CFTC and operators such as Kalshi:

• Contract types: the NFL says four categories should be prohibited: contracts one person can easily manipulate; contracts that are inherently objectionable, such as those on player injuries or misconduct; contracts on officiating; and contracts on outcomes knowable in advance. It says the CFTC has not adopted a flat prohibition on any of these categories and that the DCMs and the CFTC have declined to adopt its list of prohibited wagers.
• Age limits: the NFL says state authorities generally require bettors to be 21, and that in almost every state an 18-year-old could not bet on a game through Caesars Sportsbook but could bet on the same game through Kalshi.
• Resources: the NFL says the CFTC has 543 employees for the whole country, while Pennsylvania's gaming regulator has close to 400.
• Scale: the brief says that on the first of the NFL season, $1.8 billion of $3.3 billion in total prediction-market trading volume related to the NFL.

Kalshi disputed the league's account. "Kalshi is actively policing sports-related markets," the company said, adding that it hopes the NFL will change its position and engage on integrity.

Separately, the Seminole Tribe of Florida filed a 72-page complaint against DraftKings in Broward County, Florida, and named its chief executive, Jason Robins, in the suit. The tribe took aim at the company's "Super App", which combines predictions, sports wagering and online casino. DraftKings said its sports event contracts operate in line with the Commodity Exchange Act.

Why it matters

Operators and affiliates working with sports event contracts may need to check which rules their listings, age gates and prohibited-contract lists could end up under, because the brief frames the dispute as a choice between state and CFTC oversight. The NFL says that if the Court agrees with the Sixth and Ninth Circuits, sports wagering on these markets would be overseen by traditional state regulators. That could bring age limits and banned-bet lists closer to those of state-licensed sportsbooks.

If the CFTC is instead confirmed as the exclusive regulator, the league says it and other concerned entities could redouble their efforts for stricter rules. Contract design and monitoring requirements could then be set federally, shaped by comments on the CFTC's proposed rules.

The Seminole complaint shows that tribal disputes over prediction products are running in parallel, including over apps that bundle prediction, sports betting and casino products. Any ruling depends on the Court first agreeing to hear the case, and the brief is an advocacy filing from a party with a stated position.

What's next

The NFL asks the Court to grant certiorari before another season passes.