The NFL has formally requested that prediction market platforms halt wagering on draft picks and other outcomes knowable in advance, but the sites have declined to comply, raising serious concerns among current and former league executives about insider trading vulnerabilities.

Federally regulated platforms Kalshi and Polymarket have expanded draft-related offerings under the current administration, with Kalshi alone listing more than 100 propositions. Users have purchased roughly $2 million in stakes on the identity of the second overall pick. Neither company responded to requests for comment.

The league sent letters last month objecting to four categories of offerings: outcomes manipulable by a single individual, information knowable in advance such as draft selections and roster moves, officiating-related propositions, and topics deemed inherently objectionable including player injuries.

"Before each Draft, the league reiterates to all NFL personnel the importance of maintaining the integrity of the Draft selection process," a league spokesperson said.

Former Chargers general manager Tom Telesco said approximately 20 to 30 people within an organization typically know a team's top selection roughly 24 hours before draft day. That concentrated insider knowledge represents significant exposure.

"This scares the s--- out of me," Telesco said. "It's something I never would have considered a possibility."

Unlike traditional sportsbooks, which actively monitor betting patterns and report suspicious activity to law enforcement, prediction markets have drawn no public scrutiny over irregular trades. Large wagers simply shift odds in real time.

Former Lions and Commanders general manager Martin Mayhew warned the NFL's embrace of gambling has created structural risk the league may not be able to contain.

"The league really found a way to maximize profits when they embraced gambling," Mayhew said. "But as people get more comfortable with it, I will not be surprised when someone crosses the line. In a sense, the NFL is playing with fire."

The NBA's experience offers a cautionary example. Toronto Raptors guard Jontay Porter received a lifetime ban in 2024 after feeding inside information to a bettor. He subsequently pleaded guilty in federal court and awaits sentencing.