NCAA President Charlie Baker has written to the Commodity Futures Trading Commission (CFTC) to implore the federal regulator to suspend prediction markets from offering event contract trading on college sports unless firmer protections are put in place. He also believes that such platforms should have to work with the NCAA, including on deciding which markets are allowed.
Calling college sports markets a significant threat, Baker said in the letter that the growth of prediction markets pose a threat to student-athletes’ welfare and to the integrity of competition. That is similar to his recurring messaging about college sport prop betting on state-regulated sportsbooks.
“I implore you to suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place,” he wrote.
“The answer cannot be the status quo,” Baker added in a press release. “We need one set of fair, transparent standards.”
Time to add guardrails, says NCAA
In the letter to new CFTC Chair Mike Selig, Baker listed numerous safeguards he thinks need to be added to prediction market platforms before they should be allowed to offer trading on college sports.
Some things he cited as particular concerns include the fact that in most places, people as young as 18 can trade on sports contracts. Baker also asserted that, while many jurisdictions restrict how sports betting operators can advertise on or near college campuses, no such limits exist for prediction markets.
“Given that some college students may erroneously equate sport prediction market trading to financial investing, it’s that much more critical that restrictions are in place,” he wrote.
Baker also called for stronger integrity monitoring and geolocation measures. Integrity Compliance 360 has a ProhiTrade monitoring tool that is used by Kalshi, but details on the partnership are scant.
“While it appears that some monitoring occurs in prediction market trading, sport integrity monitoring is nuanced and requires heightened levels of review that don’t exist in many prediction markets,” added Baker. “There also don’t appear to be requirements for prediction market operators to report integrity concerns to other operators through a licensed intermediary to protect consumers.”
NCAA wants to work with CFTC, operators
Baker stressed that the NCAA is willing to work with the commission to develop a system that protects both college student-athletes and consumers from harm.
He noted that state-regulated sportsbooks are generally required to work with national sport governing bodies such as the NCAA in some capacity, including on approving markets, reporting suspicious activity and cooperating on investigations. That needs to be mirrored for prediction markets, he said.
“I appreciate the CFTC’s attention to this matter and reiterate my request for the CFTC to suspend trading on these markets while offering my commitment to assist in developing a potential future marketplace that has the necessary safeguards to protect student-athletes, consumers and college sport competitions,” he concluded.
Baker sent his letter two days after the American Gaming Association announced that it and the Indian Gaming Association wrote to the CFTC to urge them to take a firmer hand on sports contracts.
Operators says common ground can be found
SBC Americas reached out to leading prediction market operators about Baker’s letter. Kalshi offered no comment.
“We look forward to engaging with President Baker and the NCAA to codify safe, fair and transparent guardrails that protect players and consumers,” said a spokesperson for the Coalition for Prediction Markets, which comprises Kalshi, Crypto.com, Underdog, Robinhood and Coinbase. “While we may not agree with the most sweeping approaches, we do believe we can find common ground that keeps fans protected and the market accountable — without pushing users toward unregulated, offshore alternatives.”
Baker takes issue with recent events
NCAA President Baker has been outspoken on prediction markets before, labeling their expansion into sports “catastrophic.”
Just a week after those comments in mid-December, he described Kalshi’s filing for self-certification for sports event contracts on which college athletes will enter or withdraw from the transfer portal as “absolutely unacceptable.” Kalshi responded by stating that it had no immediate plans to actually list those contracts for trading.
In his letter this week, Baker referenced that recent furor, opining that the transfer portal incident demonstrates the need for the NCAA to have a seat at the table when it comes to which markets are allowed. He also suggested that it’s just a matter of time before prediction market platforms offer player prop-style markets on college athletes.
