The NCAA has stepped up its fight against new betting platforms, asking federal regulators to stop trading linked to college sports until stricter national rules are in place.
NCAA Warns Prediction Markets Endanger Student-Athletes
This request, made official in a letter this week to Commodity Futures Trading Commission (CFTC) head Michael S. Selig, shows increasing worry about the quick growth of finance-like betting on college sports and how it affects student-athletes.
In the letter, NCAA president Charlie Baker cautioned that unchecked trading on college competition outcomes looks more and more like sports betting and puts athletes at risk. These risks include harassment, match fixing, and pressure to share inside information. Baker repeated that the organization views athlete safety and fair play as its top concerns. He argued that the current setup lacks key parts to protect both groups.
Baker’s worries go beyond simple oversight. He pointed out that prediction market companies often let people join at 18 — three years younger than most states allow for regulated sports betting. This puts college students right in the crosshairs for behavior that could harm them. Baker also stressed the need to set clearer limits on ads. He noted that some students might mistake prediction contracts for real investment products instead of bets based on risk.
NCAA Presses for Suspension of Prediction Markets Until Stronger Rules Arrive
Tracking players was another key point in the NCAA’s case. Some platforms use tracking services, but Baker said they need more thorough monitoring. This includes location data and having to report any fishy activity, which is common in legal sportsbooks but missing from prediction markets. He also criticized how operators do not have to work with national governing bodies. He used Kalshi’s recent attempts to get approval for markets linked to transfer portal decisions as an example of why closer oversight matters.
In his speech at the NCAA convention, Baker said prediction markets were offering unregulated betting dressed up as financial trading. He pointed out the NCAA’s recent success in getting states to limit prop bets involving college athletes. He called for similar action at the federal level to stop similar markets from popping up under CFTC oversight.
The argument has heated up as prediction markets spread across the country. Unlike regular sportsbooks, which must follow state-by-state rules, CFTC-regulated platforms can work in all 50 states and approve new offerings on their own without prior permission. At the same time, gaming industry groups and several state attorneys general have asked Congress and the courts to step in. They claim that the current system bypasses state laws and puts consumers at serious risk.
Baker said the NCAA is ready to team up with federal officials to build a safer system. However, he stressed that trading should stop until they put meaningful changes in place.
Silvia Pavlof
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