College Athlete Prop Betting Continues Path Toward Complete Ban in the US

Article by : Erik Gibbs Apr 15, 2024

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The sportsbook industry faces challenges amid six years of remarkable expansion. In response to mounting concerns, major players are collaborating to explore responsible gaming measures.

Several states have banned certain wagers involving college athletes. NCAA President Charlie Baker’s call to prohibit proposition wagering on college athletes has gained momentum, with Louisiana becoming the 12th state to enforce the ban.

Purdue center Zach Edey acknowledged the prevalence of such incidents. Notably, Minnesota, among the five states actively deliberating on the legalization of sports betting, is poised to enact similar measures.

These prohibitions target activities enabling fans to place bets through mobile accounts on various aspects of a player’s performance during games, such as total rebounds or points scored in basketball or total touchdowns or yards gained in football.

Nevada hasn’t shown interest in banning proposition bets involving college players. Kirk Hendrick, Chairman of the Gaming Control Board, highlighted discussions with NCAA officials regarding athlete harassment and sports integrity.

Collaboration with the NCAA and Nevada’s licensed sports operators is crucial for citizen protection and betting integrity.

In March, seven leading sports betting companies formed the Responsible Online Gaming Association (ROGA) to advocate for responsible betting. Jennifer Shatley, a gaming veteran, leads ROGA, focusing on responsible gaming without targeting specific bets.

The expansion of sports betting across 38 states has seen significant industry growth, with $11 billion in national gaming revenue in 2023. However, banning proposition bets could lead to annual sportsbook revenue losses of $200 million, along with losing the ability to diversify income and offer more betting opportunities during games.

In February, Democratic lawmakers proposed using federal excise tax revenue from sports wagers to support problem gambling treatment.

Representative Dina Titus criticized the move, expressing concerns about unethical behavior in NCAA basketball and urging industry prioritization of integrity monitoring and player protection.

Sportsbook operators, including DraftKings, FanDuel and BetMGM, are aware of the increased scrutiny of their operations. Despite generating over 85% of the revenue from legal online sports betting and casinos in the US, they have pledged a substantial $20 million investment in ROGA initiatives. Notably, among these key players, only BetMGM currently operates in Nevada.

ROGA’s scope extends beyond traditional sports betting, encompassing online gaming across various states where sports betting is legal and internet casinos are licensed. It positions itself as a supportive entity, collaborating with existing responsible gaming organizations like the International Center for Responsible Gaming (ICRG).

While major player Caesars Sportsbook opted not to join ROGA, citing its 35-year commitment to responsible gaming, it has not disclosed the reasons behind its decision.