The National Collegiate Athletic Association (NCAA) has formally requested that the Commodity Futures Trading Commission (CFTC) suspend college sports prediction markets. This call comes with the demand for the implementation of rules designed to protect student athletes before such markets are allowed to operate.
NCAA President Charlie Baker communicated this request to CFTC Chair Michael Selig in a letter sent on Wednesday. Baker specifically asked the CFTC to "suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place."
Baker articulated that the "growth and haphazard nature" of sports prediction markets have led to an increase in harassment directed at student athletes by individuals placing bets. This trend, he stated, has a negative impact on the well-being of these athletes.
He further highlighted a significant concern regarding age restrictions. Baker pointed out that while most states limit sports gambling to individuals aged 21 and older, prediction markets often permit users as young as 18. This discrepancy, he warned, could "heavily entice college students — and even high school students — into engaging in these markets in a harmful way."
In his letter, Baker requested specific measures including age and advertising restrictions, the establishment of a more robust integrity monitoring system, the implementation of anti-harassment measures, and the provision of harm reduction resources.
Prediction markets, such as Kalshi and Polymarket, have experienced a surge in popularity and usage in recent months. Bets placed on sports event contracts constitute a substantial portion of their overall trading volumes.
This situation has drawn the attention of lawmakers and regulators in several states. Connecticut, New York, Nevada, New Jersey, and other states have actively sought to ban or block prediction markets that are tied to sports. Multiple state regulators have already taken action against platforms operating these prediction markets.
Prediction Market Volumes at Record Highs
Despite facing legal challenges and regulatory scrutiny, prediction markets continue to experience significant growth. Trading volumes recently reached a record high of $701.7 million on Monday.
This new record of $701.7 million surpassed the previous record of $666.6 million, which was set just one day prior. Kalshi was responsible for approximately two-thirds of the trading volumes on both of these record-breaking days.
