NCAA Urges CFTC To Suspend College Sport Prediction Markets
NCAA President Charlie Baker on Wednesday called on the Commodity Futures Trading Commission (CFTC), the federal agency that presides over prediction markets, to pause all college sport offerings in prediction markets until the agency can regulate the operators.
NCAA Willing To Work With CFTC
The NCAA sent a letter to the CFTC detailing its willingness to work with the regulatory body to assist with “developing the necessary guardrails to protect student-athletes and college sports,” according to the news release.
Safeguards requested include age and advertising restrictions, enhanced integrity monitoring, prop market prevention, anti-harassment measures, and harm reduction resources.
Although prediction markets are not considered gambling, state lawmakers and gaming regulators believe the current system is a gateway to illegal activity for student-athletes.
“I implore you to suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place,” Baker wrote, per ESPN’s David Purdum.
“Just as we need Congress to stabilize eligibility, we need federal regulators to stabilize these markets,” Baker said. “The answer cannot be the status quo. We need one set of fair, transparent standards.”
Prediction Markets Are Available In All 50 States
Traditional sportsbooks operate in 39 states and the District of Columbia, where the betting age is typically 21. Prediction markets, however, are available in all 50 states to users 18 and older.
Some prediction market operators use global compliance technology and advisory platforms, firms that provide integrity and compliance solutions for sports betting, prediction markets, and the iGaming industries.
Kalshi, a CFTC-regulated prediction market company, uses IC360, a firm that monitors the betting market for irregularities and works with sports leagues, including the NCAA.
According to Purdum, Baker acknowledged that certain prediction markets are able to monitor for integrity concerns, but the platforms are still unable to trace the geolocation of bettors.
The NCAA uses several methods to help student-athletes in the world of legalized sports betting through its integrity monitoring program, in-person and online education, state advocacy focused on removing prop bets, anti-harassment monitoring, and social change campaigns.
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