NCAA asks regulators to suspend collegiate prediction markets - ESPN

The NCAA asked a federal regulatory body Wednesday to stop prediction markets from offering trades on college sports until more safeguards are in place.

In a letter addressed to the chairman of the Commodity Futures Trading Commission, the federal agency that regulates prediction markets, NCAA president Charlie Baker said the growth of prediction markets poses a threat to the well-being of student-athletes as well as the integrity of competition.

«I implore you to suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place,» Baker wrote.

Baker identified several areas where he believes prediction markets need additional safeguards: age restrictions, advertising restrictions, robust integrity monitoring, the involvement of national governing bodies such as the NCAA, restrictions on prop bets, harm reduction resources and anti-harassment measures.

Kalshi, a leading prediction market company, uses IC360, a firm that monitors the betting market for irregularities and works with sports leagues, including the NCAA. Baker acknowledged that some prediction markets monitor for integrity concerns but said «heightened levels of review that don't exist in many prediction markets» are needed, such as tracing the geolocation of bettors. He also said prediction market operators are not required to report integrity concerns to other operators through an intermediary — a requirement for sportsbooks in most states.

He added that the NCAA is willing to work with the CFTC to develop these protections, which exist for legal sportsbooks.

ESPN has reached out to the CFTC and the Coalition for Prediction Markets, which represents many of the largest operators, for comment.

Baker also discussed