The NCAA urged the CFTC to halt prediction markets on college sports, citing risks to student-athlete welfare and integrity.

The NCAA challenges college sports prediction markets while concerns grow over integrity risks across collegiate competitions. Through a letter dated 14 January, NCAA President Charlie Baker stated that prediction market trading mirrors traditional sports wagering too closely. In his letter, Baker said Congress must stabilise eligibility and federal regulators must stabilise prediction markets together. He stated that the status quo fails and demanded one set of fair and transparent standards. Baker highlighted contracts using moneylines, point spreads, and totals offered by several prediction market operators.

He noted that some platforms also provide their own versions of parlays to users. This letter arrived soon after the American Gaming Association and Indian Gaming Association reached out to Congress. Both organisations stressed that markets similar to sports betting were launched without the safeguards required for licensed betting operators. Baker listed weaknesses he believes place athletes and consumers at risk across these platforms. These include lower minimum age thresholds, limited advertising restrictions near campuses, and weak integrity monitoring for manipulation risks.

The NCAA warned that prediction market platforms lack obligations to coordinate with national governing bodies like sportsbooks. This absence lowers transparency around suspicious activity linked to collegiate sports events. Further concerns noted that college athletes experience increased harassment and influence as markets target individual performance. Despite showing willingness to work with federal regulators, the NCAA requested a temporary suspension of collegiate prediction markets.

Federal Charges Underscore Integrity Risks

Following Baker’s letter one day, US federal prosecutors outlined enforcement action revealing betting exploitation without oversight. The Department of Justice charged 26 people accused of managing bribery and point-shaving operations. These operations targeted NCAA Division I Men’s basketball games and events in the Chinese Basketball Association. Authorities stated in a 15 January press release that bettors and intermediaries paid players to reduce performance. This strategy caused teams to fail covering betting spreads, allowing conspirators to profit.

Prosecutors said the activity started overseas in 2022 before spreading into the US college basketball systems. Officials confirmed participation of more than 39 players from at least 17 NCAA programmes and many games. Bribery amounts reportedly slung for between $10,000 to $30,000 per game. All in all, it’s claimed that millions were staked on the outcome. Getting found guilty of bribery in a sporting contest carries a sentence of up to 5 years behind bars in the federal system. On top of that, you can also expect to serve 3 years under supervision and face fines that could reach a quarter of a million bucks.

Likewise, getting pinched with a wire fraud conspiracy conviction or a wire fraud conviction itself can land you a 20-year stretch in the slammer. Such rulings also carry three years of supervised release and possible fines of $250,000.