The NFL and NCAA have reaffirmed their stance against the growing trend of prediction markets, voicing concerns this week regarding the lack of regulation surrounding contracts linked to sports events. With platforms like Kalshi and Polymarket gaining traction, the nature of these contracts closely resembles traditional sports betting. However, they can operate legally in all 50 states by classifying them as “trading,” under the oversight of the Commodity Futures Trading Commission (CFTC).
Despite the popularity of prediction-market platforms, which have secured partnerships with major sports leagues such as the NHL and UFC, both the NFL and NCAA are hesitant to embrace them. NFL Executive Vice President Jeff Miller recently provided testimony to the House Committee on Agriculture, expressing significant worries about how these contracts could affect the integrity of sports. He highlighted the absence of critical safeguards found in regulated sports betting, such as integrity monitoring and customer verification protocols.
Miller’s comments followed earlier remarks from NFL Commissioner Roger Goodell, who dismissed the notion of the league entering the prediction-markets space. Meanwhile, the NCAA’s concerns have intensified, particularly in light of recent interactions with Kalshi. Last month, the NCAA took issue with language suggesting a formal relationship with Kalshi, prompting the company to clarify its position, indicating it had no official ties to the NCAA.
NCAA President Charlie Baker conveyed that the current state of prediction markets is unsustainable, especially with established betting companies like DraftKings and FanDuel preparing to launch their prediction-market platforms. Baker warned that unless action is taken at a federal level, the situation is likely to deteriorate, describing the existing absence of rules and oversight as potentially catastrophic for all parties involved.
In response to the NCAA’s concerns, Kalshi spokesperson Elisabeth Diana highlighted that prediction markets are subject to similar regulations as the stock market, asserting that prohibitions against manipulative trading are enforced by the CFTC. She emphasized that robust measures are implemented to prevent illegal trading activity.
As the debate around prediction markets continues, the NFL and NCAA are standing firm in their apprehensions, highlighting the complexities and challenges of integrating prediction markets within the current sports betting landscape. The future of prediction markets remains uncertain, as regulatory frameworks struggle to keep pace with this evolving sector.