NCAA Raises Integrity Concerns with Prediction Market Kalshi

INDIANAPOLIS, Ind. — The NCAA expressed serious concerns regarding the integrity of collegiate sports and its relationship with prediction market company Kalshi. In a letter dated October 30, NCAA Chief Legal Officer Scott Bearby questioned how Kalshi monitors its markets amid fears of misconduct.

The NCAA requested insight into Kalshi’s methods for ensuring contest integrity and asked whether it will report any integrity issues to the NCAA. The governing body also inquired about Kalshi’s definition of ‘prohibited customers’ and whether the company would cooperate with NCAA investigations.

Bearby acknowledged Kalshi’s commitment to protecting athletes and stressed the necessity of preventing abuse and harassment in sports. “We welcome Kalshi’s stance on its efforts to protect the integrity of NCAA competitions,” he stated.

The NCAA’s letter also addressed potential risks associated with new prop betting markets introduced by Kalshi. Bearby emphasized that prop bets could lead to heightened integrity concerns. He reiterated last year’s call from NCAA President Charlie Baker for a nationwide ban on such betting activities involving college athletes.

In response, a Kalshi spokesperson indicated the company maintains strong market integrity provisions as a federally licensed financial exchange. “We value the NCAA’s feedback and are working on adjusting the language on our site,” the spokesperson said.

Prediction markets like Kalshi are emerging as competitors to traditional sportsbooks. However, Kalshi faces legal challenges from state regulators, who claim the company violates state laws by offering contracts resembling sports bets.

Recently, Kalshi partnered with IC360, a recognized integrity monitor for various leagues. Despite its efforts, the NCAA continues to contend with allegations of betting violations, including an incident involving a Fresno State men’s basketball player manipulating performance for gambling purposes.

As collegiate sports navigate the changing betting landscape, the NCAA’s collaboration with prediction markets like Kalshi remains under scrutiny, reflecting wider concerns regarding the integrity of college athletics.