Kate Rice
Associate Editor
Loyola University Chicago School of Law, JD 2026
March Madness is among the most anticipated sporting events of the year, with millions of viewers and billions of dollars in wagers making it one of the busiest times for college sports betting. However, rapid expansion of legalized sports betting across the U.S. has introduced significant regulatory challenges for the NCAA, colleges, and the compliance community. With an estimated $31 billion wagered in the 2025 tournament alone, ensuring conformity with NCAA sports betting regulations has become increasingly complex. To address these challenges, the NCAA has turned to advanced compliance technology, like Prohibet and Integrity Compliance (IC360), to monitor and enforce wagering restrictions.
Legal and regulatory challenges in NCAA sports betting
The recent legalization of sports betting in numerous states has created a patchwork regulatory landscape across the country. While the landmark case Murphy v. NCAA overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018 to allow states to regulate sports betting, NCAA Bylaw 10.3 strictly prohibits NCAA athletes, coaches, and staff from participating in any form of wagering on college sports. This discrepancy between the varied state laws and blanket NCAA rules presents enforcement difficulties and potential legal conflicts.
While regulatory agencies, like state lottery commissions, oversee legal sports betting operations, NCAA compliance officers are charged with ensuring that anyone affiliated with the organization adheres to their wagering policies. Violations can trigger severe penalties, including suspensions, loss of eligibility for athletes, and reputational damage to programs and universities. The increased accessibility of online and mobile betting platforms further complicates regulatory enforcement.
Another challenge stems from prop betting, which refers to wagers placed on individual athlete performances. NCAA President Charlie Baker has advocated for restrictions on prop bets involving college athletes, citing concerns over integrity risks and potential harassment of student-athletes from gamblers. Some states have already taken steps to prohibit these types of wagers, but enforcement remains inconsistent across jurisdictions.
New technology for ensuring sports betting compliance
To promote compliance with sports betting rules throughout the NCAA, many programs have partnered with monitoring systems designed to prevent prohibited individuals from engaging in sports wagering. For instance, ProhiBet is a platform that collaborates with colleges, sportsbooks, and state regulators to cross-reference betting activity and identify attempts by restricted individuals to place wagers on NCAA events. If an NCAA-affiliated bettor is identified, ProhiBet generates automated compliance alerts that are sent to compliance officers.
ProhiBet is particularly useful for detecting proxy betting (in which restricted bettors attempt to place wagers through valid third parties) through the use of blockchain technology and artificial intelligence. There are several other similar monitoring technologies in this space, which help institutions identify potential sports betting violations before they compromise the integrity of the program or sport.
With new technology comes new challenges
For the compliance community, the implementation of ProhiBet and similar technologies raises several regulatory considerations. One concern is adherence to data privacy regulations—monitoring and storing betting data must comply with state and federal privacy laws, such as the General Data Protection Regulation (GDPR) and federal data protection laws. While ProhiBet uses data encryption and privacy protection measures to ensure accordance with data protection legislation, this is not uniform across all monitoring platforms, raising alarms about how betting data is collected, stored, and shared between regulatory bodies and private institutions and companies.
Another challenge involves addressing interstate regulatory conflicts. As sports betting laws vary by state, compliance efforts must align with differing regulatory frameworks while maintaining adherence to NCAA prohibitions. Some states, such as New Jersey and Nevada, have more lenient regulations compared to others, creating obstacles to enforcement consistency. However, there is the potential for federal oversight in sports betting. While regulation has largely been left to individual states, some lawmakers have proposed federal guidelines to standardize compliance efforts. This could create a more cohesive regulatory framework, though may also introduce new challenges in balancing state autonomy with national sports betting enforcement standards.
Compliance professionals must also consider the role of third-party operators, such as sportsbooks and betting platforms, in enforcing NCAA regulations. Many states require sportsbooks to implement responsible gambling measures, but oversight varies, making it difficult to ensure uniform compliance standards. This lack of standardized regulation across the industry creates loopholes that could be exploited, further complicating enforcement efforts.
An uncertain future for collegiate sports betting compliance
As legal sports betting continues to expand, regulatory oversight must adapt accordingly. The NCAA’s use of ProhiBet sets a precedent for using technology to monitor and enforce compliance with NCAA rules and regulations. However, ongoing collaboration with state regulators, gaming commissions, and compliance professionals will also be necessary to adequately address emerging challenges.
The widespread adoption of sports betting has brought both solutions and concerns, requiring institutions to proactively update compliance policies, invest in responsible monitoring technologies, and educate stakeholders on evolving regulations. By leveraging tools like ProhiBet and advocating for stronger regulatory frameworks, the NCAA aims to preserve the integrity of collegiate athletics while adapting to a rapidly changing sports betting landscape. As more states refine their sports betting laws, the compliance community will play a crucial role in ensuring adherence to NCAA policies and state laws, as well as maintaining ethical standards in college sports.