NCAA Urges Regulators to Halt Collegiate Betting Markets
The NCAA has issued a formal request to federal regulators to halt collegiate betting markets amid rising concerns regarding their impact on student-athlete welfare and competition integrity. This appeal was articulated in a letter from NCAA president Charlie Baker to the Commodity Futures Trading Commission (CFTC).
NCAA’s Call for Immediate Action
Baker’s letter emphasized the need for enhanced safeguards before prediction markets—platforms that allow trading on college sports outcomes—are permitted to operate. He urged the suspension of these markets until a robust regulatory framework is established.
Key Concerns Raised by the NCAA
Baker highlighted several critical areas requiring attention:
- Age Restrictions: Establishing age limits for participation.
- Advertising Regulations: Implementing restrictions on how these markets are promoted.
- Integrity Monitoring: Necessitating rigorous oversight to ensure fair play.
- National Governing Bodies Involvement: Including groups like the NCAA in governance.
- Prop Bets Limitations: Imposing restrictions on specific types of bets.
- Harm Reduction Resources: Providing resources to mitigate negative impacts on individuals.
- Anti-Harassment Measures: Protecting users from harassment within these markets.
Integrity of Prediction Markets at Stake
While companies like Kalshi utilize integrity monitoring firms to oversee their operations, Baker stresses the need for more rigorous scrutiny. He pointed out gaps in current practices, such as the lack of geolocation tracking for bettors and the absence of required reporting on integrity issues—practices that traditional sportsbooks follow.
During a speech at the 2026 NCAA Convention, Baker described prediction markets as a form of unregulated betting on college sports. His remarks underscore a pressing need for federal regulatory action to stabilize this burgeoning sector.
Market Trends and Legal Implications
Prediction markets have surged in popularity over the past year. Unlike traditional sportsbooks, which operate under strict regulations in 39 states, prediction markets are accessible in all 50 states for users aged 18 and older. This broader availability raises questions about oversight and consumer protection.
The NCAA’s request comes amid ongoing legal disputes between state gambling regulators and leading prediction market companies. These companies argue they differ from sportsbooks, as users trade contracts with each other rather than betting against a house.
Industry Reactions
The landscape for prediction markets is fragmented, with major sports leagues expressing varied viewpoints. While the NFL has voiced concerns to Congress, the NHL and UFC have engaged with prediction platforms such as Kalshi and Polymarket.
As discussions continue, the NCAA remains committed to collaborating with the CFTC to develop essential regulatory measures. With the stakes high, the future of collegiate betting markets hangs in the balance.
