NJ bill banning some partnerships between sportsbooks and universities moves

The NJ bill, A4113, was originally introduced last session, but did not gain traction. Monday, the Assembly Higher Education Committee voted out an amended version. In general, the proposal would make it illegal for sportsbooks or “intermediaries” (think affiliates or booster clubs) to make deals with public institutions of higher learning.

This means that state universities, like Rutgers, could not partner with sportsbooks. But the bill does not address private universities or colleges, of which there are 13. Among them in Division I are Fairleigh Dickinson, Monmouth, Princeton and St. John’s.

The bill passed unanimously Monday, with little discussion and few public comments.

The amended bill would allow university-gambling relationships that don’t involve direct marketing or advertising to students. Further, the NJ bill would allow relationships for “academic purposes or (that) provide experiential learning opportunities to students enrolled in the institution,” according to the committee report.

“Allowing this balance in terms of ensuring that our students remain as safe as possible but at the same time recognising that this could be a valuable career for them is the proper balance,” Jennifer Maloney of the New Jersey Association of State Colleges and Universities told the committee.

Betting around college sports a national issue

The NJ proposal is one of many that has surfaced across the country relative to wagering and students or sports. The NCAA earlier this year asked legal sports betting states to ban college-player prop bets. Some have complied and others, like Massachusetts, already had such bans in place.

Massachusetts is also among the states that do not allow partnerships between universities and gambling companies. The issue is not part of the state law there. It was an ask from the regulator as it was approving licences in 2022. At that time, PointsBet North America (since purchased by Fanatics Sportsbook) had a deal with the University of Colorado in which it paid the university $30 per referral. The deal was short-lived and ended in January 2023.

In addition, Caesars Sportsbook had deals with Louisiana State and Michigan State, both of which were terminated.

No bets on this Texas campus

In related news, ABC 7 News reported Monday that West Texas University is blocking access to gambling sites using “campus resources,” including wifi. University president Walter Wendler cited concern for addiction and abuse in announcing the ban. Sports betting and online casino are not legal in Texas.

When online sports betting went live in Indiana in October 2019, Purdue University officials made it illegal for students and anyone working with or at the university to place bets. Several other schools, including Villanova, imposed similar bans. But the prohibition on using university-issued devices or university wifi, may be the first of its kind.