Will the PROTECT Act Push Bettors Toward Crypto Sportsbooks?

A new bill introduced in Congress is looking to ban all proposition bets on collegiate athletes.

Rep. Michael Baumgartner has introduced the “Providing Responsible Oversight and Transparency and Ensuring Collegiate Trust for Student Athletes Act (PROTECT Act).”

Unlike the recently reintroduced SAFE Act, this does not seek to outlaw betting on collegiate sports but instead focuses specifically on banning bets on individual athlete performances.

Baumgartner, who chairs the College Sports Caucus, commented: “Sports gambling on college campuses has surged in recent years.”

“Student athletes dedicate themselves to their sport and education, and it’s essential that we protect their integrity both on and off the field. This bill doesn’t ban betting on college sports games, but it targets wagers on student athletes’ individual performances,” he continued.

He added: “We are witnessing a troubling rise in harassment of college athletes on campuses, as well as an alarming increase in cases of student athletes being coerced into throwing games for financial gain.”

The bill would make it illegal for sportsbooks to accept prop bets, which would be defined as a “wager on a specific action or achievement by a student-athlete during a game that does not directly impact the final score.”

Enforcement under the PROTECT Act would sit with the Federal Trade Commission, treating violations of the Act as unfair or deceptive business practices under the Federal Trade Commission Act. As a result, betting businesses would face FTC fines and penalties should they offer prop markets.

Robinhood’s Prediction Markets and the Future of College Sports Betting

Baumgartner’s timing is notable, as March Madness is imminent. March Madness features the best collegiate basketball teams in one of the most popular wagering events on the United States of America’s sporting calendar.

Additionally, Robinhood has just announced the launch of a prediction hub with Kalshi, which will allow its 25 million user base to wager on sports event contracts. These contracts are regulated under the Commodity Futures Trading Commission at a federal level but effectively permit sports wagering in 50 states.

The PROTECT Act has been sent to the House Committee on Energy and Commerce for further review. It joins the SAFE Bet Act as the second piece of gambling legislation targeted at a federal level.

Crypto Deregulation but Gambling Prohibition?

President Trump’s premiership advocates domestic deregulation, so industry analysts remain skeptical about whether federal bills will gain any traction. The PROTECT Act, like the SAFE Bet Act, will face vocal opposition from industry stakeholders.

Trump’s administration is pro-crypto, although other than Bitcoin reserves being touted across the country, there has been little movement to see crypto sportsbooks integrated into the regulatory landscape. That being said, a restriction on betting markets at a federal level would only serve to encourage customers seeking a better product to use operators with a more exciting product.

Wagering on NCAA competition has come under additional scrutiny lately. The University of Texas athletics department has recently self-reported five betting violations. Just shy of $15,000 was wagered in breach of NCAA rules in the Lone Star State.

Under NCAA rules, players, coaches, and staff are all prohibited from wagering on any sport in which the NCAA sponsors a championship, including the professional echelons of competition.

Similarly, there are bills currently under consideration in both New Jersey and Connecticut that seek to prohibit advertising at institutions of higher education. New Jersey’s proposed legislation differentiates between direct and indirect marketing, whereas Connecticut’s looks to blanket ban all advertising at colleges.