A New Jersey bill to prohibit partnerships between gaming operators and universities is progressing

With how popular sports betting has become in the United States, everyone wants a piece of the action. Sports wagering is a market that has dominated the U.S. in the last six years. While the demand to profit from sports betting is higher than it has ever been, not everyone can have the success they desire. 

In New Jersey, a bill is set to prohibit public colleges, universities, and their affiliates from partnering with sports betting and iGaming operators. This proposed bill is on the move and could come into effect down the line. The amended version of the A4113 bill passed 6-0 by the Assembly Higher Education Committee on Monday. 

The A4113 bill would include prohibiting athletic departments or booster cubs from partnering with sports betting operators. That includes access to advertising at the institutions and stadium facilities via digital and broadcast content. This amended bill will include online casinos in New Jersey but it doesn’t cover over a dozen private higher-learning institutions.

What changes were made to the A4114 amended bill?

One change to the amended bill that did pass on Monday was allowing higher-learning institutions to partner with licensed gaming operators. The bill states that these are for “academic purposes” to “provide experiential learning opportunities to students enrolled in the institution.” 

However, the bill does state that institutional foundations related to a public institution of higher education are not prohibited from entering the market. This can happen as long as no marketing or advertising occurs. Direct advertising includes marketing or advertising at on-campus locations and off-campus locations. That includes any electronic advertising or marketing explicitly directly targeted to a student in an institution. 

In the last year, the NCAA has been working with several states to try and ban betting on collegiate player props. It’s an issue that NCAA President Charlie Baker has tried to tackle first-hand. New Jersey is one of the states that is urged to ban betting on player props but there hasn’t been any success.

Other universities around the country have failed to partner with sports betting companies

Since the PASPA was overturned in 2018, sports betting companies directly aligned with colleges and universities have been frowned upon. The University of Colorado had a marketing deal with PointsBet but that did not last long. In 2022, PointsBet was acquired by Fantics Sportsbook. 

This is not the first time that the New Jersey Assembly has tried to outlaw sports betting operators from partnering with colleges and universities. Bill A5226 was introduced in February 2023 and moved through a few of the committees before ultimately stalling. Regulators will have to wait and see if a national ban on partnering with colleges and universities ever comes into effect.