The NCAA has requested the CFTC to put a hold on college sports betting on prediction markets, emphasizing its negative effects on student-athletes. NCAA president Charlie Baker told CFTC chairman Michael Selig that the college sports association will work with the regulator to establish appropriate safeguards.
In a letter to the CFTC chair dated January 14, Baker expressed concern over college sports betting via prediction market trading. He noted that protecting the well-being of student athletes and the integrity of competition are of the highest priority to the NCAA. Baker believes the growth and nature of college sports betting on prediction markets pose a significant threat to both.
Baker’s letter comes almost a month after he strongly opposed Kalshi’s reported plans to offer wagers on events on the transfer portal.
Kalshi filed to accept bets on whether a player enters or withdraws from the NCAA transfer portal, or where the player would commit.
However, the prediction market platform later stated that it had no immediate plans to list those portal-related contracts. Baker also supported the delayed deployment of the portal-related contracts, noting that those markets pose a threat to the competitive integrity of the recruiting processes.
NCAA president Baker stresses the need for proper safeguards
The NCAA president emphasized the importance of establishing proper safeguards, including integrity monitoring, advertising and age restrictions, preventing prop markets, and anti-harassment procedures. According to Baker, Congress needs to stabilize eligibility, while federal regulators stabilize prediction markets to establish a single set of fair and transparent standards.
Baker further explained that the NCAA’s betting harm reduction program includes educating hundreds of thousands of student-athletes on the dangers of sports wagering. The association monitors over 23,000 contests annually for suspicious activity and conducts globally regarded research.
Baker mentioned that the NCAA advocates for over 1,100 member schools and more than half a million student-athletes.
“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 believes that this minor oversight could heavily entice college students, as well as high school students, into engaging in these markets in a harmful way. He, however, noted that most states that allow legalized sports betting get a piece of the revenue to fund harm reduction programs.
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Source: https://www.cryptopolitan.com/ncaa-requests-cftc-pause-prediction-markets/