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Congressional Hearing Details Surge in College Sports Betting and Associated Risks

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Congressional Hearing Details Surge in College Sports Betting and Associated Risks
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SCCG Take — Regulators must close prediction market loopholes with uniform federal standards while operators strengthen verification to limit underage and campus exposure before enforcement intensifies.

Nearly nine years after the Supreme Court struck down the Professional and Amateur Sports Protection Act, a House subcommittee examined the resulting surge in sports betting on U.S. college campuses. The hearing in the Rayburn House Office Building featured testimony on elevated participation rates among students, widespread underage access through mobile apps, and gaps in oversight for prediction markets.

Jordan Maynard, chairman of the Massachusetts Gaming Commission, provided key data points. Seventy-one percent of people in Massachusetts aged 18 to 25 have bet on sports. A Boston University School of Public Health survey found 34% are under 21, while approximately 22% of college-age users in Massachusetts are under the state's legal betting age of 21.

Testimony Details Underage Access and State Enforcement Efforts

Maynard explained that age verification technologies have prevented at least 11,000 accounts from being opened by people under 21. Proxy betting through parents, siblings or older friends persists despite rules against it. Massachusetts prohibits individual collegiate player prop bets, wagering on in-state college sports, advertisements targeting those under 21, and betting activity on campuses entirely.

Maynard described prediction markets as sports wagers by another name that avoid state laws, taxes, regulatory requirements and problem gaming standards. He voiced support for Massachusetts Attorney General Andrea Joy Campbell’s lawsuit against Kalshi, now pending before the Massachusetts Supreme Judicial Court. Ranking member Alma Adams criticized the CFTC for using a loophole to sidestep state gambling laws.

Experts Advocate Federal Standards to Protect Students

University health officials from the University of Michigan, University of Mississippi and Ohio State University joined the testimony. All four witnesses, including Maynard, agreed that eliminating player prop bets on collegiate events would reduce problem gambling. Dr. Daniel Durkin stated that many students do not realize the risks involved.

An NCAA survey from 2023 showed 67% of students living on campus had bet on sports, 16% exhibited problem behaviors such as chasing losses, and 6% reported losing more than $500 in a single day. Baumgartner, who chaired the hearing, noted these figures are likely higher today. Witnesses highlighted that students often view betting as a financial issue rather than gambling and do not seek help. As reported by CDC Gaming, experts called for campus education on gambling to match efforts on alcohol and substance use.

Forward Steps for Campus Safeguards

The record makes clear that patchwork state rules and prediction market loopholes leave students exposed. Federal action to standardize the ban on collegiate player prop bets and align oversight for similar products would give operators and universities clearer compliance paths while reducing harm in a demographic that develops gambling disorders at elevated rates.

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