Charlie Baker said college sports prediction markets act like sports wagering and is calling for stabalization from regulators.
The NCAA is insisting that federal regulators will shut down prediction markets for college sports until further guidelines have been established.
NCAA President Charlie Baker told the Commodities Futures Trading Commission (CFTC) on Wednesday that “the answer cannot be the status quo.”
Key Takeaways
- Baker asked for strong guide rails to be put in place before re-launching the sports contracts.
- Age restrictions, integrity monitoring, and advertising regulations were several of Baker’s requests for prediction platforms.
- College player props have been removed from sportsbooks in several states, in part, due to Baker’s requests.
Baker has taken a strong interest in cleaning up the world of sports betting as it relates to NCAA athletes and events.
With event contracts offered by platforms such as Kalshi, Robinhood, and crypto.com emerging as viable alternatives, he is hoping their markets will be reeled in to avoid possible issues.
“Just as we need Congress to stabilize eligibility, we need federal regulators to stabilize these markets,” Baker wrote. “We need one set of fair, transparent standards.”
The NCAA requested in a letter to the CFTC, which regulates prediction platforms, a system of regulations for college sports-related markets. It also expressed its openness to working with its officials to create the best environment for student-athletes.
However, Baker asked that the CFTC block all college sports-related markets until those regulations were established.
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Baker outlines prediction platforms’ shortcomings
Many state gaming officials – most recently, those in Tennessee – have accused prediction platforms of operating as illegal sportsbooks.
Baker’s letter did not take the same stance, but it illustrated the similarities between sports wagering and prediction contracts.
“Sports wagering is broadly defined as individuals wagering money on the outcome of sporting events or any portion thereof,” Baker wrote. “Under that definition, sport prediction markets act like sports wagering.”
He continued to discuss the NCAA’s approaches to combating sports betting-related issues. Between their efforts and regulations from sportsbooks and state officials, he compiled a list of “critical safeguards” that were missing from prediction platforms.
That list included:
- Age restrictions: Sports bettors have to be 21 in most states, while prediction platforms are only limited to users of at least 18 years.
- Advertising restrictions: Prediction platforms aren’t barred from advertising near college campuses like sportsbooks are.
- Integrity monitoring: Baker said the “nuanced” monitoring for sports wagering requires “heightened levels of review that don’t exist in many prediction markets.”
- National governing body involvement: Prediction platforms do not need to greenlight markets with the NCAA and other entities.
- Prop market restrictions: Baker is a strong opponent of college player props, which are illegal in many states, but are allowed on prediction platforms.
- Anti-harassment measures: Individuals found guilty of harassing student-athletes can be banned from sportsbooks.
- Harm reduction resources: Many states allocate money to resources to fight problem gambling, and Baker said prediction platforms should have similar support systems in place.
NCAA leads gambling reforms
While Baker’s job involved much more than monitoring the gambling industry, he’s been extremely active in trying to reform various corners of the industry.
As outlined in his letter, he campaigned against college player props due to their possibility to create harassment and a loss of student-athlete integrity. His attempts at reform proved to be effective, as a Signify study released in October found that student-athlete harassment decreased by 22% year-over-year.
Still, he faces a tall task taking on prediction platforms, which have largely shown an unwillingness to work with anyone other than the CFTC.
