The National Collegiate Athletic Association (NCAA) has formally urged the Commodity Futures Trading Commission (CFTC) to halt prediction markets on college sports, citing escalating risks to student-athlete welfare and the integrity of competition.
In a letter dated 14 January, NCAA President Charlie Baker argued that prediction market trading tied to college sports too closely resembles traditional sports wagering.
Baker asserted in his letter: “Just as we need Congress to stabilise eligibility, we need federal regulators to stabilise these markets. The answer cannot be the status quo. We need one set of fair, transparent standards.”
He pointed to contracts based on moneylines, point spreads, and totals, which several prediction market operators are offering. Some also offer their own versions of parlays.
Baker’s letter followed almost immediately after the American Gaming Association and Indian Gaming Association contacted Congress about prediction markets.
In both instances, one major point was how markets resembling sports betting have been introduced without the regulatory safeguards that govern licensed betting operators.
Baker outlined several deficiencies that he believes expose athletes and consumers to harm, including lower minimum age thresholds, limited advertising restrictions near campuses, and insufficient integrity monitoring tailored to sports manipulation risks.
The NCAA also warned that prediction market platforms are not required to coordinate with national governing bodies as sportsbooks must, thereby reducing transparency around suspicious activity.
It further raised concerns that college athletes face heightened harassment and undue influence as markets focus more closely on their performance.
While emphasising a willingness to collaborate with federal regulators on a more robust framework, the NCAA called for an interim suspension of collegiate sports prediction markets until appropriate protections are in place.
Federal charges underscore integrity risks
One day after Baker sent his letter, federal prosecutors in the US announced a sweeping enforcement action that highlighted how betting-related activity can be exploited when oversight fails.
The Department of Justice revealed charges against 26 individuals accused of orchestrating an international bribery and point-shaving scheme involving NCAA Division I Men’s basketball games and contests in the Chinese Basketball Association.
In a 15 January press release, authorities alleged that professional bettors and intermediaries paid players to deliberately underperform so teams would fail to cover betting spreads, enabling conspirators to place profitable wagers.
Prosecutors said the scheme began overseas in 2022 before expanding to US college basketball, ultimately involving more than 39 players across at least 17 NCAA programmes and dozens of manipulated games.
Bribe payments allegedly ranged from $10,000 to $30,000 per game, with millions wagered on fixed outcomes.
A conviction for bribery related to sporting contests carries a potential penalty of up to five years in federal prison, followed by three years of supervised release and a fine that can reach $250,000.
Separate convictions for conspiracy to commit wire fraud or for wire fraud itself could result in a maximum sentence of 20 years in prison for each offence, along with three years of supervised release and a possible $250,000 fine.