College Basketball Becomes Most Traded Sport on Kalshi for February

Men’s college basketball appears to be driving a surge in prediction market activity, highlighting the growing popularity of event-based trading on college sports.

A spokesperson for prediction market operator Kalshi told Front Office Sports that users traded approximately $2.27 billion in contracts tied to men’s college basketball games in February. That was more than for the NFL, which produced $1.8 billion, and the NBA, which recorded $1.74 billion.

The surge comes as the US prepares for March Madness, one of the most heavily wagered-upon sporting events of the year, which has itself become the subject of controversy for the best prediction markets.

The NCAA, which owns the trademark to March Madness, has objected to Kalshi’s use of the term on its platform, saying it could imply official involvement or endorsement, and has asked for the removal of its trademark from the Kalshi site.

The dispute follows earlier requests from the NCAA for Kalshi to remove language that incorrectly suggested the organization verified outcomes.

Despite this tension, prediction markets have continued to get a foothold in pro sports. Golfer Bryson DeChambeau signed an endorsement deal with Kalshi earlier this year, while NBA star Giannis Antetokounmpo recently took an equity stake in the company.

But professional leagues remain divided on the issue.

The NHL and MLS have signed up with prediction market companies, but the likes of the NFL and the PGA Tour currently don't allow their athletes to endorse them.

NCAA urges federal regulators to suspend college prediction markets

The NCAA has also raised its concerns about prediction markets with federal regulators, calling on them to stop trading on college sports events until additional safeguards are introduced.

In a letter to the Commodity Futures Trading Commission (CFTC), which currently regulates prediction markets, the President of the NCAA, Charlie Baker, warned that the expansion of prediction markets poses potential risks to student welfare and integrity.

“I implore you to suspend collegiate sport prediction markets until a more robust system with appropriate safeguards is in place,” he wrote.

The NCAA said that stronger protections were needed, including stricter age restrictions, limits on advertising, improved monitoring of betting integrity, and restrictions on certain types of wagers. It has also raised concerns that prediction market operators don't have to share suspicious activity reports, which is standard practice in regulated sports betting markets.

Prediction markets allow users to trade contracts based on whether specific events will occur, rather than placing traditional wagers against a sportsbook. Because the platforms match users trading opposite positions, companies say they are more like financial exchanges than gambling operators.

Unlike the best sports betting sites, which usually set a minimum age of 21, prediction market platforms are generally available across the US to users aged 18 and older. These issues have led to a string of ongoing legal challenges across the country.