U.S. college sports organizations urge CFTC to suspend college sports prediction markets

On January 16, the National Collegiate Athletic Association (NCAA) recently called on the U.S. Commodity Futures Trading Commission (CFTC) to suspend prediction markets related to college sports until more comprehensive regulatory rules are established to protect student athletes. NCAA President Charlie Baker wrote a letter to CFTC Chairman Michael Selig on Wednesday, requesting a suspension of college sports prediction markets’ operations “until sufficient safeguards are in place.” Baker pointed out that the rapid expansion and disorderly development of sports prediction markets have led to an increase in harassment behaviors toward student athletes, negatively impacting their physical and mental health. He also emphasized that most U.S. states set the minimum age for sports betting at 21, while prediction markets often allow users as young as 18 to participate, which could “seriously induce college students and even high school students” to engage in potentially harmful speculative activities. In his letter, Baker proposed several regulatory suggestions, including:
· Implementing stricter age restrictions and advertising standards
· Establishing a more comprehensive integrity monitoring system for events
· Introducing anti-harassment mechanisms
· Providing risk intervention and harm mitigation resources
Despite increasing regulatory pressure, prediction market platforms like Kalshi and Polymarket have seen continuous explosive trading volumes in recent months. Legislators and regulators in multiple states, including Connecticut, New York, Nevada, and New Jersey, have attempted to ban or restrict sports-related prediction markets.