INSIDE COMPLIANCE

The Super Bowl remains the most watched sporting event in the United States, drawing billions in legal and illegal wagers each February. In recent years, a new form of wagering known as prediction markets has emerged, allowing users to trade on event outcomes in ways that resemble both sports betting and financial derivatives. These trading platforms raise compliance challenges because they intersect with both federal derivatives regulation and state gambling laws. At the same time, the NFL has taken their own stance, which is to restrict prediction markets from advertising around the Super Bowl. As a result, prediction markets tied to the Super Bowl exist in a regulatory gray area that demands clearer oversight to protect consumers and legal betting markets.