Kalshi Files Intent to Self-Certify NCAA Transfer Portal Markets Despite Criticism

Kalshi has officially notified the Commodity Futures Trading Commission (CFTC) that it will be self-certifying markets on NCAA transfer portals, drawing strong criticism from the NCAA, according to ESPN. 

The prediction market confirmed in the filing that the contracts would initially be listed by the end of Dec. 17, with the intention of listing the markets daily. Self-certification also means that Kalshi can list the contracts even without initial approval from the CFTC. 

According to ESPN, the transfer portal markets had not been listed as of 8 p.m. ET on Wednesday, with Kalshi confirming to the media outlet that it sometimes certifies markets that it ultimately does not list.

The new markets would include both Division I football and basketball athletes. They would then be settled when an announcement was made on the transfer, either through social media from the player or their agent, or when the player officially enters the portal. 

The introduction of such markets has drawn intense criticism from the NCAA. Speaking to ESPN reporter David Purdum, NCAA President Charlie Baker stated that the NCAA opposes all types of college sports prediction markets, citing the abuse players face online from betting and suggesting that Kalshi’s markets would only exacerbate it. 

Baker also noted that the contracts would also place athletes under greater pressure and could also impact the integrity of games and recruitment processes. 

The emergence of the new contracts comes as Kalshi has been facing continuous backlash across the US from state gambling regulators and the NFL for its sports prediction markets, as the markets mirror sports betting. 

Massachusetts seeks to block Kalshi's prediction markets 

One of the states attempting to prevent Kalshi from offering its best prediction markets is Massachusetts, which recently sought an injunction to prevent the company from offering its sports-event contracts in the state. 

Massachusetts Attorney General Andrea Joy Campbell asked a Suffolk County Superior Court Judge to stop Kalshi from offering event contracts tied to football, basketball, and other sporting events. 

The enforcement began in September, with a lawsuit in the state that argued that, due to not having a license from the Massachusetts Gaming Commission, Kalshi was offering illegal sports wagering. The suit also noted that Kalshi was facilitating underage betting by allowing users 18 and above to access markets, despite the state’s legal betting age being 21. 

The lawsuit follows in the footsteps of other cease-and-desist letters sent in at least nine other states, including New York and Connecticut, with judges in Nevada and Maryland ruling that state gambling laws applied to Kalshi’s sports event contracts. 

While states claim that Kalshi offers illegal sports betting, the prediction market platform continues to argue that the CFTC federally regulates its markets, and as such, can be provided in states despite state regulators' wishes. 

The Suffolk County Superior Court judge has said that he plans to rule on the matter in January.