NCAA Urges Regulators to Halt Collegiate Betting Markets

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NCAA Urges Regulators to Halt Collegiate Betting Markets

The NCAA has formally requested that federal regulators pause collegiate betting markets, particularly prediction markets, until better safeguards can be implemented. This request was made by NCAA President Charlie Baker in a letter addressed to the Commodity Futures Trading Commission (CFTC). Baker emphasized that the current growth of prediction markets presents significant risks to student-athletes and challenges the integrity of college sports.

NCAA’s Call for Enhanced Safeguards

Baker highlighted specific areas requiring attention: age restrictions, advertising limitations, comprehensive integrity monitoring, and regulations concerning proposition bets. He also called for harm reduction resources and measures to prevent harassment. “I implore you to suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place,” Baker stated.

Concerns Over Integrity and Monitoring

Kalshi, a major player in the prediction market space, utilizes IC360, a firm dedicated to monitoring betting activities for irregularities. While Kalshi applies some integrity measures, Baker called for increased scrutiny and requirements akin to those in the traditional sportsbook sector, including the tracing of bettors’ geolocation.

Currently, prediction market operators are not mandated to report integrity issues to other operators, unlike sportsbooks in many states. Baker expressed the NCAA’s readiness to collaborate with the CFTC to establish protections comparable to those governing legal sportsbooks.

Growing Popularity of Prediction Markets

Prediction markets, which allow users to bet on the outcomes of various events, including college sports, have surged in popularity recently. These markets are accessible in all 50 states to users aged 18 and older, contrasting sharply with traditional sportsbooks that operate only in 39 states with a minimum betting age of 21.

Prediction markets allow trading on yes/no outcomes.
Traditional sportsbooks are regulated by state gambling authorities.
Key differences:
- Prediction markets charge transaction fees, similar to brokers.
- They do not involve a house taking bets.

Mixed Reactions from Major Sports Leagues

The reaction from major sports leagues towards prediction markets has varied. The NFL has voiced concerns regarding their expansion, while leagues like the NHL and UFC have partnered with Kalshi and other prediction market firms.

Baker reiterated the need for federal regulation during his address at the 2026 NCAA Convention, stating that unregulated betting on college games poses a significant issue. The NCAA’s advocacy for intervention highlights the urgent need for a stabilized and safe betting environment for collegiate athletics.