Concerns Over Student-Athlete Well-being and Competitive Integrity
The NCAA has formally requested the Commodity Futures Trading Commission (CFTC) to impose a hold on college sports betting activities conducted through prediction markets. The association has highlighted the potentially negative effects these markets could have on student-athletes. NCAA president Charlie Baker has communicated with CFTC chairman Michael Selig, stating the NCAA's commitment to collaborating with the regulator to implement appropriate safeguards.
In a letter addressed to the CFTC chair on January 14, Baker articulated significant concerns regarding the proliferation of college sports betting via prediction market trading. He emphasized that the paramount priorities for the NCAA are the protection of student-athlete well-being and the preservation of the integrity of athletic competitions. Baker posited that the escalating presence and nature of college sports betting on prediction markets represent a substantial threat to both of these critical areas.
Baker's correspondence follows closely on the heels of his strong opposition, nearly a month prior, to Kalshi's reported intentions to offer wagers related to events within the NCAA transfer portal. Kalshi had initially filed to accept bets concerning whether a player would enter or withdraw from the NCAA transfer portal, as well as their potential future commitments. However, the prediction market platform subsequently clarified that it had no immediate plans to list contracts directly associated with the transfer portal.
Baker also voiced his support for the delayed deployment of these portal-related contracts, noting that such markets could compromise the competitive integrity of the collegiate recruiting processes.
NCAA President Baker Emphasizes the Need for Proper Safeguards
NCAA president Charlie Baker underscored the critical importance of establishing robust safeguards. These proposed measures include comprehensive integrity monitoring, stringent advertising and age restrictions, the prevention of prop markets, and the implementation of anti-harassment procedures. Baker argued that Congress should focus on stabilizing eligibility criteria, while federal regulators should work to stabilize prediction markets. This, he believes, would lead to the establishment of a unified set of fair and transparent standards for all involved.
Baker further elaborated on the NCAA's comprehensive betting harm reduction program. This initiative involves educating hundreds of thousands of student-athletes about the inherent dangers associated with sports wagering. The association actively monitors over 23,000 contests annually for any signs of suspicious activity and conducts research that is recognized globally for its rigor.
Baker highlighted that the NCAA represents over 1,100 member schools and supports more than half a million student-athletes across the nation.
“Given the potentially addictive and harmful nature of wagering on sports, most states restrict sports wagering to those at least 21, while college sport prediction markets often allow participants as young as 18.”
– Charlie Baker, President of the NCAA
Baker expressed his belief that this discrepancy in age restrictions could significantly entice college students, and potentially even high school students, to engage with these markets in ways that could be detrimental to their well-being. He also noted that a majority of states that permit legalized sports betting collect a portion of the revenue, which is then allocated to fund harm reduction programs.