The NCAA has raised a dispute with prediction market Kalshi, after the operator was found to have been using its “March Madness” trademark, despite the NCAA previously addressing the issue, according to GamblingHarm.org.
Key Takeaways
- A dispute has been raised by the NCAA against Kalshi.
- It follows NCAA President Charlie Baker's December statement that the league does not agree with the contracts being offered in college sports.
- Concerns have been raised that the use of the term could give the impression that the league supports the prediction markets contracts.
The prediction market has been found to have used the term “March Madness” in a number of its sports event contracts, despite the platform being able to use a generic term, such as “basketball tournament,” instead.
“The NCAA has previously addressed issues with Kalshi illegitimately using NCAA marks for their offerings. This continues to be a misrepresentation of any NCAA involvement, and we have requested immediate removal of NCAA trademarks,” the NCAA said to GamblingHarm.org on Friday.
Concerns were raised that Kalshi’s use of the term “March Madness” could give the impression that the NCAA supports the sports event contracts the platform offers.
In December, NCAA President Charlie Baker stated that prediction markets do not align with the league's values, and in January, he insisted that the Commodity Futures Trading Commission (CFTC) shut down the markets for college sports until further guidelines were established. The league has also raised concerns about player prop bets from both traditional sportsbooks and prediction markets.
The NCAA has requested that Kalshi remove the term from its contracts.
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Civil enforcement filed against Kalshi in Nevada
While Kalshi has faced backlash from the NCAA over a trademark, it has also been subject to civil enforcement actions from several states, including Nevada.
Last week, Nevada filed a suit to block Kalshi from operating its sports event contracts in the state, as states continue to argue over whether prediction market products fall under state law or federal law.
Kalshi moved to prevent the enforcement action. However, the injunction that was ruled by a lower court judge in November was dissolved on Tuesday, which previously blocked state efforts to take action against the operator.
“The Board continues to vigorously fulfill its obligation to safeguard Nevada residents and gaming patrons, and uphold the integrity of a thriving gaming industry,” said Nevada Gaming Control Board chairman Mike Dreitzer in a press release.
The case was moved to federal court on Thursday, and the CFTC has made it clear that it will support prediction markets in any legal battles they may face in states. The CFTC has maintained that the markets are not sports gambling, but instead federally regulated “swaps”.
Nevada would follow Massachusetts' lead and become the second state to secure a court order against Kalshi.
