The NCAA has expressed deep concern over the emergence of online prediction markets for college football, warning that they lack necessary regulatory safeguards and could threaten the integrity of the sport and the safety of student-athletes. This response follows financial company Robinhood’s recent launch of markets allowing trades on game outcomes, which has sparked legal and ethical debates in the sports betting industry.
The National Collegiate Athletic Association (NCAA), through its senior vice president Tim Buckley, is leading the charge against these prediction markets. The NCAA is a governing body for college athletics in the United States, and its primary role is to ensure fair competition and protect student-athletes. Buckley emphasized the organization’s stance in a public statement, highlighting the potential risks associated with unregulated betting platforms.
Prediction markets, such as those offered by Robinhood and Kalshi, allow users to trade on the outcomes of sports events using financial instruments like event contracts. These markets differ from traditional sportsbooks by operating under federal jurisdiction rather than state gambling laws. The NCAA views this as a form of gambling that could lead to corruption, match-fixing, and other integrity issues, particularly in college sports where athletes are amateurs.
The timing of this concern is critical, with Robinhood announcing its markets on Tuesday, August 20, 2025, and the NCAA responding on Thursday, August 22. These markets are accessible online nationwide, making them available in states where sports betting might not be legal or regulated. For example, a market on the Iowa State-Kansas State game was already open for trading, demonstrating the immediate impact as the college football season begins.
The core reason for the NCAA’s concern is the lack of guardrails that state regulators typically impose, such as age verification, responsible gambling measures, and mechanisms to prevent insider trading or manipulation. Robinhood and Kalshi argue that they fall under the Commodity Futures Trading Commission (CFTC), a federal agency, which they claim provides sufficient oversight. However, the NCAA believes this federal approach may not adequately protect against threats to competition integrity and student-athlete safety.
How these markets operate has led to legal battles, with Robinhood filing lawsuits against gambling regulators in New Jersey and Nevada to prevent blocking their services. Kalshi is also engaged in similar legal disputes. This has created a complex regulatory landscape where traditional sportsbooks like DraftKings and FanDuel are now exploring entry into prediction markets to compete, as seen with FanDuel’s partnership with CME Group.
The impact of this development could be significant, potentially increasing access to sports betting but raising ethical and regulatory questions. It might lead to more federal involvement in gambling regulation or new legislation to address gaps. For college sports, it could heighten risks of exploitation and harm to athletes, prompting calls for stronger protections and oversight.
Looking ahead, the NCAA has committed to analyzing these developments and working with industry leaders to establish guardrails. The outcomes of ongoing legal cases and market responses will likely shape the future of prediction markets. This situation underscores the evolving nature of sports betting in the U.S. and the need for balanced regulations that protect integrity while accommodating innovation.