Legislation that forbids retail and online sportsbooks from forming marketing alliances with public universities was enacted this week by New Jersey Governor Phil Murphy (D).
Assembly Bill 4113/Senate Bill 2155, which Murphy signed, prohibits public colleges and universities from signing an agreement with a bookmaker such as DraftKings or FanDuel to "advertise in the institution's stadiums and other facilities." Additionally, the ban supports broadcast and digital sports programming at schools.
"A public institution of higher education shall not participate in a sports wagering partnership,” the bill summary reads. The sports wagering ban extends to public athletic departments and booster clubs. It does not apply to private colleges and universities.
In just one session day, AB4113/SB2155 was quickly approved by the New Jersey Legislature. The General Assembly supported the bill 69–10 on June 30. The Senate approved the proposal 34-5 that same day after it passed both chambers in Trenton.
After numerous instances of oddsmakers working with colleges to recruit students to gamble received a lot of bad press, New Jersey lawmakers decided that the sports betting partnership law was necessary.
The University of Colorado received $30 from PointsBet, a sportsbook that has since been purchased by Fanatics, for each new sports wagering account created through the Buffaloes' affiliate referral program in 2022. While the school's supporters were the target audience for the sports department, which was emphasized by football head coach Deion Sanders, PointsBet paid the school $30 per student for their business and signed up thousands of kids.
William Hill, which now primarily conducts business in the US as Caesars Sportsbook, entered into an agreement with Rutgers University, by far the biggest public university in New Jersey, in 2019 to allow the corporation to promote its sports betting business. William Hill agreed to contribute to the Scarlet Knights student-athlete scholarship fund as part of the agreement.
Along with Rutgers, Montclair State, Rowan, Kean, New Jersey Institute of Technology, Stockton, William Paterson, Thomas Edison State, The College of New Jersey, New Jersey City University, and Ramapo are also prohibited from promoting sports bets.
Murphy has banned public schools and institutions from affiliating with sportsbooks, but he has not yet taken action on another gambling measure that is on his desk.
The New Jersey Legislature sent a bill in late June to ban the operation of contentious online sweepstakes gambling platforms and applications in the Garden State, in addition to the sportsbook bill. Online websites that use "dual-currency" systems, in which sweepstakes coins can be traded for cash or prizes from the sweepstakes operator or a related business, are prohibited by Assembly Bill 5447/Senate Bill 4282.
In several places, sweeps casinos are still under legal examination. States that have enacted legislation banning sweeps companies like Virtual Gaming Worlds (VGW), the company behind Chumba Casino, LuckyLand Slots, and Global Poker, include Connecticut, Idaho, Montana, Nevada, and Washington. In California, New York, Arkansas, Florida, and Maryland, bills to add states to the list of prohibited states are still moving forward.
Such sites have received cease and desist letters from numerous additional states.
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