NJ Legislature Advances Bill to Ban Sports Betting Partnerships with Colleges

A bill making its way through New Jersey’s legislative process could have a significant impact on the relationship between sports betting companies and state colleges and universities. On September 23, 2024, the Assembly Higher Education Committee approved a version of Assembly Bill 4113, which seeks to prohibit public higher education institutions from entering into partnerships with sports wagering operators. This measure, if ed, would mark a formal stance in separating educational institutions from gambling entities in the Garden State.

Restrictions on Partnerships with Public Institutions

Initially introduced in April, Assembly Bill 4113 focuses on banning public colleges and universities from forging partnerships or contractual agreements with sports betting operators or intermediaries. Under this proposed legislation, such partnerships could not include promotional agreements involving the institution’s stadiums, digital sports content, or any form of advertising. This means a sports betting operator wouldn’t be allowed to on-campus or within media associated with these schools. Notably, the bill allows for some exceptions, particularly in cases where the partnership provides academic benefits, such as “experiential learning opportunities” for students.

Jennifer Keyes-Maloney, executive director of the New Jersey Association of State Colleges and Universities, highlighted the importance of this amendment. She noted that the change ensures the legislation “strikes the proper balance” by protecting students from direct advertising while recognizing that such partnerships could provide valuable career opportunities for students.

Sports Betting Partnerships and the NCAA

This bill follows a growing trend across the United States of reducing the involvement of gambling companies with collegiate sports. The bill was introduced after rising concerns over sports betting’s influence on college campuses. During the COVID-19 pandemic, partnerships between sportsbooks and universities became more common as both parties sought new revenue streams. For example, the University of Colorado-Boulder made headlines in 2020 when it partnered with PointsBet, becoming the first school outside of Nevada to establish such a deal. Following their lead, schools like Michigan State and Louisiana State University entered into agreements with Caesars Sportsbook.

However, by 2023, these arrangements had come under increasing scrutiny. Several states and sports organizations, including the NCAA, began pushing back. The American Gaming Association (AGA) introduced new policies requiring to end sponsorships with NCAA-d schools. PointsBet and Caesars eventually dissolved their partnerships with these institutions, signaling a broader industry shift. Louisiana was one of the first states to formally legislate against these kinds of partnerships, ing a law in 2023 that banned promotional agreements between colleges and sportsbooks.

National Trends and Broader Implications

New Jersey is not the only state grappling with the complex relationship between sports betting and higher education. The bill reflects broader concerns across the country. Earlier this year, the NCAA urged states with legal sports betting to restrict or ban wagers on college athlete performance, a practice known as college-player prop bets. Some states, like Massachusetts, have enacted restrictions on such bets and prohibited sports betting companies from partnering with higher education institutions.

Meanwhile, other universities have taken their own steps to curtail betting activities on campus. West Texas University, for instance, recently blocked access to online gambling sites using its campus Wi-Fi and resources, aiming to prevent potential addiction issues among students. Similarly, Purdue University in Indiana has banned students and employees from placing bets on sports using university resources.

As discussions continue nationwide, it is evident that states and schools are striving to find a balance between the rising popularity of legal sports betting and the need to protect student-athletes and the student body.

Educational Efforts and Responsible Gambling

Parallel to these legislative efforts, organizations such as the NCAA and the Responsible Online Gaming Association (ROGA) are working to address concerns related to student gambling. Earlier this year, the NCAA launched its “Draw the Line” campaign, focused on educating student-athletes about the risks of sports betting and promoting responsible gambling behavior. Additionally, ROGA, in partnership with behavioral health groups and responsible gambling councils, introduced a nationwide college-focused gambling education initiative.

Source:

NJ bill banning some partnerships between sportsbooks and universities moves, igamingbusiness.com, September 24, 2024.