Kalshi submitted a filing to the Commodity Futures Trading Commission (CFTC) on Wednesday, notifying the regulator that it is self-certifying markets regarding whether college athletes will enter the transfer portal.
The move has drawn criticism from the NCAA, according to ESPN.
Key Takeaways
- Kalshi has filed with the CFTC that it is certifying NCAA transfer portal contracts.
- The listing of such markets are not confirmed, but they would include Division I football and basketball players.
- The move has drawn intense criticism from the NCAA, which recently decided to maintain its ban on student-athlete betting.
The company wrote in the filing that it intended to begin listing the contracts Wednesday and add more daily, though none were available Wednesday evening. A Kalshi spokesperson told ESPN it does certify markets that it does not ultimately list.
Markets in the filing involve NCAA Division I football and basketball players, with the markets being settled when the player officially enters the transfer portal or announces their intention to do so, either through social media or their agents.
The move to self-certify markets involving college athletes has provoked criticism from the NCAA, which argues the new markets would threaten the integrity of competitions and recruiting processes.
“The NCAA vehemently opposes college sports prediction markets. It is already bad enough that student-athletes face harassment and abuse for lost bets on game performance, and now Kalshi wants to offer bets on their transfer decisions and status. This is absolutely unacceptable and would place even greater pressure on student-athletes while threatening competition integrity and recruiting processes,” NCAA president Charlie Baker said in a statement to ESPN.
It's the latest controversial move from the leader in prediction markets. Kalshi is currently facing litigation with several state gambling regulators and has received criticism from the NCAA and NFL regarding its sports-event contracts.
Enjoying Covers content? Add us as a preferred source on your Google account
NCAA revokes rule change that allowed pro sports betting
In an attempt to protect its student-athletes from the dangers of college-related betting, the NCAA recently reversed an approved rule change that would have allowed its athletes to bet on professional sports.
Before the reversal, the NCAA revealed it would delay the rule change following widespread major pushback, including from SEC commissioner Greg Sankey.
The decision to scrap the revision followed several betting scandals involving college athletes. After a month-long procedural period, two-thirds of D-I member schools voted to rescind it.
“Because sports betting rules are common legislation, the ban on all forms of betting - for sports in which the NCAA sponsors a championship - will remain in place for all three NCAA divisions,” the governing body said in a statement.
The NCAA initially announced college athletes and staff would be allowed to bet on pro sports but later revealed that it would be delaying the rule after it had received major pushback, mainly from the SEC commissioner, Greg Sankey.
