NCAA Calls for Regulation of Prediction Markets in College Sports

In a significant move that could reshape the landscape of sports betting, the NCAA has formally requested the Commodity Futures Trading Commission (CFTC) to halt prediction markets focused on college sports until stronger safeguards are implemented. This request was made by NCAA president Charlie Baker in a letter to the CFTC’s chairman, highlighting the potential risks these markets pose to both the welfare of student-athletes and the integrity of collegiate competitions.

Baker expressed deep concerns over the rapid growth of prediction markets, which allow users to trade on the outcomes of various events, including college sports. He emphasized that without appropriate regulatory measures, the unregulated nature of these markets could lead to detrimental effects on student-athletes and the overall fairness of the games.

In his letter, Baker outlined several key areas where he believes additional protections are necessary. These include age restrictions to prevent underage gambling, advertising limitations to control the promotion of these markets, and rigorous integrity monitoring to ensure fair play. He also called for the involvement of national governing bodies like the NCAA in overseeing these markets, restrictions on proposition bets, and the establishment of harm reduction resources and anti-harassment measures.

Baker acknowledged that while some prediction market operators, such as Kalshi, have implemented integrity monitoring through firms like IC360, there is still a need for heightened scrutiny. He pointed out that many prediction markets lack essential reporting requirements that are standard for traditional sportsbooks. For instance, sportsbooks are mandated to report integrity concerns to other operators, a practice not currently required for prediction markets.

During his address at the 2026 NCAA Convention, Baker reiterated the urgency of federal intervention, stating, “So-called prediction markets are offering what anyone can see is unregulated betting on college games.” His remarks came in light of recent developments where Kalshi announced its intention to self-certify markets related to college athletes entering the transfer portal, a move that drew criticism from the NCAA.

The rise of prediction markets has been notable over the past year, especially as they offer a unique trading system that differs from traditional sportsbooks. While sportsbooks operate under strict regulations in 39 states and the District of Columbia, prediction markets are accessible in all 50 states for users aged 18 and older. This broad accessibility raises further concerns about the potential for underage gambling and the lack of protective measures for young bettors.

The legal status of prediction markets remains a contentious issue, as state gambling regulators continue to grapple with leading prediction market companies over their classification. Unlike traditional sportsbooks, which operate against a house, prediction markets allow users to trade contracts with one another, generating revenue through transaction fees rather than a stake in the outcome.

As the debate over the regulation of prediction markets continues, major sports leagues find themselves divided on the issue. The NFL has voiced its concerns to Congress, while other leagues like the NHL and UFC have formed partnerships with prediction market companies, signaling a complex and evolving relationship between sports organizations and the burgeoning prediction market industry.

As the NCAA pushes for regulatory oversight, the future of prediction markets in college sports hangs in the balance, with implications that could affect athletes, bettors, and the integrity of collegiate athletics as a whole.