NFL eases tone on prediction markets: now they’re an engagement tool

• NFL's EVP Jeff Miller has softened his stance on prediction markets
• This is not to say that league opposition towards the market has eased
• Most platforms do not address insider trading

Who would have thought that the National Football Association, which is hosting one of the largest sports events of the week, Super Bowl 60, would soften its stance on prediction markets?

The NFL has been among the first to oppose the legalization of sports betting on a federal level in the pre-2018 era, arguing that if such an event did occur, sportsbooks would need to pay "integrity fees."

NFL may be signalling a broader shift in prediction markets

This opposition was short-lived, and the NFL eventually softened its tone to the point where it started teaming up with sportsbooks. Now, a similar shift appears to be happening in the prediction markets space.

Last year, NFL EVP Jeff Miller said that he did not approve of prediction markets, but in a conversation with Front Office Sports, he appeared more open to the sector, with his previous skepticism largely gone.

"It’s innovative, that marketplace is dynamic. [...] It is a fan engagement tool, there’s no question around that, and that’s been good for the league," Miller told the publication.

This is a notable change in Miller’s view of the sector, after he previously argued that there were justified concerns about the potential impact of sports-related futures contracts on the integrity of NFL games.

His remarks came in the wake of initial revelations about corruption in the NBA, leading to the arrest of several prominent insiders, alongside dozens of other non-league-affiliated individuals.

Back in December, however, Miller said that the league was worried about sports-related futures contracts that had been introduced nationwide. Specifically, Miller argued that the NFL was concerned about the lack of clear monitoring for information-sharing violations and the potential for markets to be manipulated.

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Miller, though, appears to be slightly less worried about these markets, but his measured tone in the interview does not suggest any immediate league-wide shift, which could eventually see more mainstream sports engage with prediction markets.

If anything, Miller’s original skepticism is correct – prediction markets do not have clear regulations on inside trading. In fact, some executives have suggested that insider trading can be an accepted feature of these platforms, as it encourages participants to consider carefully which outcomes they back.

At the same time, New York's Attorney General, Letitia James, has cautioned residents against using prediction market platforms to place a bet onthe Super Bowl.

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