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

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 traction, with Louisiana becoming the 12th state to enforce such a ban.

Purdue center Zach Edey acknowledged the prevalence of these incidents. Notably, Minnesota, one of five states debating sports betting legalization, is expected to adopt similar measures.

Focus of the Proposition Bet Bans

These prohibitions target activities enabling fans to place bets through mobile accounts on specific elements of a player’s performance during games, such as:
• Total rebounds or points scored in basketball
• Total touchdowns or yards gained in football
• Other individual statistical outcomes involving college athletes

Nevada hasn’t shown interest in banning proposition bets involving college players. Kirk Hendrick, Chairman of the Gaming Control Board, noted discussions with NCAA officials regarding athlete harassment and sports integrity. Collaboration with the NCAA and Nevada’s licensed sports operators is seen as crucial to ensure citizen protection and betting integrity.

Industry Response and Responsible Gaming Initiatives

In March, seven leading sports betting companies formed the Responsible Online Gaming Association (ROGA) to advocate for responsible betting practices. Jennifer Shatley, a veteran of the gaming industry, was appointed to lead ROGA, focusing on responsible gaming initiatives without targeting specific types of wagers.

• Sports betting has expanded across 38 states, generating $11 billion in national gaming revenue in 2023.
• Banning proposition bets could lead to $200 million in annual sportsbook losses, reducing revenue diversity.
• In February, Democratic lawmakers proposed using federal excise tax revenue from wagers to fund problem gambling treatment programs.

Political and Industry Reactions

Representative Dina Titus criticized the current approach, highlighting ethical concerns in NCAA basketball and calling for greater integrity monitoring and player protection.

Sportsbook operators such as DraftKings, FanDuel and BetMGM — who together generate over 85% of all legal online betting revenue in the U.S. — have pledged $20 million to fund ROGA initiatives. Notably, among these key players, only BetMGM operates in Nevada.

ROGA’s mission extends beyond sports betting to include online gaming and iCasinos in states with legalized frameworks, collaborating with organizations such as the International Center for Responsible Gaming (ICRG).

While Caesars Sportsbook declined to join ROGA, citing its 35-year commitment to responsible gaming, it has not publicly explained its reasoning. The formation of ROGA underscores a pivotal moment for the industry — one where growth and responsibility must evolve hand in hand.