US College Athlete Body Urges CFTC to Pause College Sports Prediction Markets

A leading advocacy organization representing US college athletes has formally requested the Commodity Futures Trading Commission (CFTC) to immediately impose a moratorium on the approval and operation of prediction markets related to college sports outcomes.

The group argued that the rapid proliferation of these financial products poses an immediate and unacceptable threat to the integrity of collegiate athletics and the mental health and safety of student-athletes. The request comes as prediction market operators increasingly seek CFTC approval to offer contracts based on non-financial outcomes, including events occurring in college sports.

Key concerns cited in the plea include the heightened risk of athlete harassment, insider trading, and the corruption of amateur competition. Unlike professional athletes, college players are often younger, lack institutional protections against market pressures, and are highly vulnerable to undue influence or social media threats based on market outcomes.

The organization specifically urged the CFTC, the federal regulatory body responsible for overseeing the derivatives markets, to use its authority to halt the operation of existing markets and refuse approval for new contracts until comprehensive rules and safeguards can be established. The advocates emphasized that the NCAA’s existing rules are insufficient to manage the complexities and pressures introduced by high-stakes financial speculation on individual and team performances.

Source: US college athlete body urges CFTC pause college sports prediction markets