NCAA president Charlie Baker is making another attempt to have federally regulated player prop markets banned from prediction platforms.
Key Takeaways
- The CFTC has not implemented major regulations since Baker last wrote in January.
- Baker called for a number of changes, including market elimination, cooperation, customer restrictions, and more.
- The NCAA has spent years fighting player prop betting markets at sportsbooks.
Baker sent his four-page letter to Commodity Futures Trading Commission chairman Michael S. Selig, on Tuesday. It was written after no changes were made to the federal regulation of sports event contracts at prediction platforms since Baker sent his last letter Jan. 14.
The correspondence contained 12 “respectfully (submitted)” bullet points with recommended policies and measures to protect college sports, student-athletes, and institutions. It noted the suggestions are based on the NCAA’s experience dealing with sports betting since it was federally legalized in 2018, and its “comprehensive sports betting harm reduction program,” which it claimed significantly reduced the negative effects of wagering in college sports.
The first two ideas deal with the monitoring of contract trades; specifically, requiring prediction platforms to report suspicious activity within a timely manner, as well as to geo-track traders, which the letter said “does not appear to be systematically captured on current prediction platforms.” The information would be used to assist investigations in cases involving questionable trading.
Further down, Baker campaigned for the removal of player prop prediction markets. This follows his campaigns against player prop availability at sportsbooks, which led several states to pull the wagers from their state’s approved catalog.
The NCAA has consistently advocated for the elimination of college sport proposition betting markets due to their negative impact “on student-athletes and sports competition integrity.”
He also called for general restrictions and limitations, including creating a list of prohibited traders, such as student-athletes and officials, increasing the minimum trading age to 21, and outlawing NIL advertising deals involving prediction markets.
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Stricter regulations
Baker’s letter encouraged the CFTC to allow governing bodies such as the NCAA to collaborate with prediction platforms on their lists of markets.
It also asked for programs designed to educate individuals about the effects of gambling harm and to identify and treat those suffering from problem gambling behaviors to be extended to prediction market sites.
Baker’s final suggestions included anti-harassment measures, establishing clear language across all college sports markets, and creating “substantial penalties” for platforms that do not comply with the regulations.
The letter closed by reinforcing Baker’s desire to have the CFTC shut down college sports prediction markets until more regulations are created.
“The NCAA appreciates the Commission’s attention to this matter,” he said. “While I continue to believe that a temporary suspension of trading on these markets would be prudent, collaborating with you and the Commission to develop the safeguards described above to protect student-athletes, consumers, and the integrity of collegiate athletic competitions, is essential.”
Ongoing battle
The letter was sent the same week that March Madness - which is projected to draw more than $4 billion in sports bets and trades - tipped off.
While this year's tournament recently began, Baker’s opposition to player prop markets and loosely regulated markets did not. He has campaigned for stricter regulations for years, although the rise of prediction platforms has given him a new target.
Baker said earlier this week that sports betting has resulted in a severe increase in harassment toward athletes, coaches, and officials.
“I mean, this is crazy town with respect to how this is working right now,” he said.
