The NCAA says it is 'deeply concerned' about the rise of prediction markets for college sports

[NCAA Distribution Center. The National Collegiate Athletic Association regulates athletic programs of many colleges and universities.]

The NCAA has issued strong warnings about the rapid expansion of online prediction markets for college sports, stating last week that the college sports organization is "deeply concerned" about the lack of regulatory guardrails for the emerging platforms.

In response to Robinhood Markets (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]) and Kalshi's new offerings that allow trading on the results of college football games, the NCAA emphasized the risks the markets pose to the integrity of athletic competition and the safety of student-athletes. The organization specifically criticized that the prediction platforms fall under Commodity Futures Trading Commission oversight, not state gambling regulation, and argued that the absence of state-level supervision threatens both fair play and athlete welfare.

Robinhood (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]) through its partnership with Kalshi has attracted a huge amount of attention just ahead of the college football season starting in full this weekend with marquee matchups that include Texas vs. Ohio State and Alabama vs. Florida State.

Last week, reports indicated that prediction market platform Polymarket is preparing to return to the U.S. in time for the bulk of the football season.

The sports betting sector continues to see disruption due to the advent of prediction markets. For its part, FanDuel (NYSE:FLUT [https://seekingalpha.com/symbol/FLUT]) has entered a strategic partnership with CME Group (CME [https://seekingalpha.com/symbol/CME]) to create a platform that allows retail users to bet on the outcomes of financial market events. The joint venture is set up to operate as a non-clearing futures commission merchant. Pending regulatory review, the launch could be later in 2025. Meanwhile, DraftKings (NASDAQ:DKNG [https://seekingalpha.com/symbol/DKNG]) has publicly stated that it is actively monitoring and exploring entry into prediction markets.

MORE ON FLUTTER AND DRAFTKINGS

* Robinhood: Valuations Too Stretched, Upside Is Limited [https://seekingalpha.com/article/4816672-robinhood-stock-valuations-too-stretched-upside-limited]
* Robinhood: The Financial Super-App Is Flexing Its Success [https://seekingalpha.com/article/4816328-robinhood-the-financial-super-app-is-flexing-its-success]
* Robinhood: It's 2021 All Over Again, The Memes Are Back (Rating Downgrade) [https://seekingalpha.com/article/4816317-robinhood-its-2021-all-over-again-memes-are-back-ratings-downgrade]
* Are you ready for football? Kalshi and Polymarket are [https://seekingalpha.com/news/4488066-are-you-ready-for-football-kalshi-and-polymarket-are]
* FanDuel plays defense with a partnership to enter the event-based prediction markets [https://seekingalpha.com/news/4487875-fanduel-plays-defense-with-a-partnership-to-enter-the-event-based-prediction-markets]