Key highlights:
- The NCAA has asked federal regulators to suspend college sports betting due to harassment concerns.
- Age restrictions and lack of monitoring make betting platforms risky for student-athletes.
- Rapid growth of prediction markets like Kalshi and Polymarket increases volatility and speculation.
The National Collegiate Athletic Association (NCAA) has urged federal regulators to suspend operations of college sports betting platforms amid rising harassment of student-athletes by bettors.
NCAA President Charlie Baker sent a letter to Commodity Futures Trading Commission Chairman Michael Selig, requesting that all betting on college sports be halted until more robust systems with appropriate safeguards are implemented.
Baker highlighted that the rapid and largely unregulated growth of sports betting platforms contributes to an increase in harassment incidents involving student-athletes, negatively affecting their well-being.
An additional concern involves age restrictions. While most U.S. states limit sports betting to individuals aged 21 and over, many platforms allow users aged 18 and above, creating potential legal and ethical issues.
Regulatory measures and market growth
The NCAA has recommended several measures to protect student-athletes:
- Age and advertising restrictions
- More reliable monitoring systems
- Anti-harassment measures
- Steps to reduce potential harm to students
Prediction markets such as Kalshi and Polymarket have seen rapid growth in recent months, with sports betting accounting for a significant share of trading volume.
Prediction market TVL (total value locked) growth. Source: DefiLlama
Lawmakers and regulators in states including Connecticut, New York, Nevada, and New Jersey are pushing to ban or block such platforms. Several state regulators have already taken enforcement action.
Despite legal threats, the platforms continue to thrive. Trading volumes reached a record $701.7 million USD on January 12, surpassing the previous day’s $666.6 million USD. Kalshi accounted for approximately two-thirds of the volume on both days.
Analysis of market dynamics
Data-driven analysis suggests that college sports prediction markets have unique economic characteristics.
Unlike professional leagues, where media coverage reduces information asymmetry, college competitions create numerous local “information pockets,” from player injuries to internal team dynamics. This makes the markets highly volatile and attractive to speculators.
Historically, conflicts between traditional institutions and new technologies are often resolved through hybrid regulatory models. While the NCAA emphasizes student protection, it does not fully consider the effect of prediction markets on the commercial value of college sports.
The call for suspension may be driven not only by ethical concerns but also by oversight of monetization in college sports.
Source: https://coincodex.com/article/80255/ncaa-wants-college-sports-betting-halted-over-harassment-concerns/
