New Jersey Sportsbooks Banned From Public College Partnerships

Sports betting marketing ban signed into law on July 8, prohibiting retail and online sportsbooks from partnering with public colleges and universities in New Jersey.

Key Legislation

This week, New Jersey Governor Phil Murphy signed legislation that prevents public colleges and universities in the state from entering into marketing and promotional partnerships with sports betting entities. The law, known as Assembly Bill 4113/Senate Bill 2155, prohibits a public college or university from entering into a contract to align with a sportsbook like DraftKings or FanDuel to “advertise in the institution’s stadiums and other facilities.”

The prohibition additionally lends to a school’s digital and broadcast sports content.

Reason Behind the Ban

New Jersey lawmakers reasoned that the sports betting partnership statute was needed after many examples of oddsmakers colluding with universities to sign up students to gamble garnered considerable negative publicity. A notable incident involved PointsBet, which paid the University of Colorado $30 for every new sports wagering account registered through the Buffaloes’ affiliate referral program.

In 2019, Rutgers University struck a deal with William Hill, which today predominantly operates in the US as Caesars Sportsbook, to allow the company to advertise its sports betting operations. The pact required William Hill to help fund Scarlet Knights student-athlete scholarships.

Sweeps Ban Remains

Murphy has made it illegal for public colleges and universities to affiliate with sportsbooks, but he has yet to act on another gaming bill on his desk. In addition to the sportsbook bill, the New Jersey Legislature forwarded a bill to prohibit controversial online sweepstakes casino platforms and apps from operating within the Garden State.

States Prohibiting Sweeps Firms

Sweeps casinos continue to face legal scrutiny in numerous states. Connecticut, Idaho, Montana, Nevada, and Washington are among the states that have passed laws prohibiting sweeps firms like Virtual Gaming Worlds (VGW), which is behind Chumba Casino, LuckyLand Slots, and Global Poker, from operating.

Conclusion

In conclusion, New Jersey has banned public colleges and universities from partnering with sportsbooks due to concerns over student safety and exploitation. The ban on online sweepstakes casinos remains pending, as Governor Murphy has yet to act on the legislation.