Operators of prediction markets affirmed their ability to establish “secure, equitable, and transparent frameworks” after NCAA President Charlie Baker requested that the Commodity Futures Trading Commission (CFTC) halt contracts related to college sports events.

“We are eager to collaborate with President Baker and the NCAA to establish secure, fair, and transparent regulations to ensure the protection of players and consumers,” commented a representative from the Coalition for Prediction Markets, which includes Kalshi, Crypto.com, Underdog, Robinhood, and Coinbase. “While we may not endorse the most extensive measures, we are convinced that we can discover mutual understanding that safeguards fans and maintains market accountability — without steering users toward unregulated offshore options.”

Baker, in a correspondence to CFTC Chair Michael Selig, called on the federal authority to instruct regulated prediction market platforms to cease the offering of postseason college sports contracts until enhanced protective measures are designed and executed.

“Ensuring the welfare of student-athletes and maintaining competitive integrity are top priorities for the NCAA, and the rapid expansion of college sports prediction markets poses a significant risk to both. I strongly urge you to suspend these markets until a more comprehensive system with appropriate safeguards is established,” Baker expressed.

“The solution cannot be maintaining the current state of affairs,” Baker continued in a press release. “We require a unified set of fair and transparent standards.”

Baker noted that prediction markets operate as financial instruments monitored at the federal level, escaping oversight by state gaming regulators and missing standard sportsbook protections. He pointed out that regulated sportsbooks collaborate with the NCAA on integrity-related issues, such as reporting suspicious activities and aiding investigations, and argued that prediction markets should adhere to similar protocols. Furthermore, he stated the NCAA should participate in determining which markets should be allowed.

Baker highlighted gaps in integrity monitoring and geolocation.

“Although some form of monitoring appears to be present in prediction market transactions, sports integrity monitoring is intricate and necessitates higher review standards that may not be present in many prediction markets,” he wrote. “For instance, tracking bettors’ geolocation is often crucial information for addressing sports integrity issues but seems absent from prediction market platforms. There also appear to be no obligations for operators to share integrity concerns with other operators through a licensed intermediary to safeguard consumers.”

He further raised alarms that individuals as young as 18 are trading on sports contracts and indicated that limitations typically relegated to sportsbook advertising near campuses do not extend to prediction markets.

“Given that some college students might mistakenly consider sports prediction market trading to be financial investing, it becomes even more vital that appropriate restrictions are enforced,” Baker wrote.

Prediction markets have begun launching event contracts linked to game results and player performances. Critics have asserted that these contracts mimic unregulated sports betting. Kalshi contended that the products differ from traditional sports betting because no “house” exists, framing the activity instead as peer-to-peer trading.

Baker mentioned recent controversies surrounding Kalshi’s filing to self-certify event contracts associated with college athletes entering or exiting the transfer portal, categorizing it as “completely unacceptable.” Kalshi stated it currently has no plans to list those contracts.

Baker dispatched the letter just two days after the American Gaming Association and Indian Gaming Association implored the CFTC to adopt a stricter stance toward sports contracts.

Baker’s plea followed a federal indictment in Pennsylvania regarding a college basketball point-shaving conspiracy involving multiple athletes from 17 NCAA Division I teams.