COLLEGE SPORTS BETTING IN THE U.S.


College Sports Betting in the U.S. T


The five-year explosive growth of U.S. sports betting has surpassed even the most generous predictions. Sharon Harris reports.


he five-year explosive growth of U.S. sports betting has surpassed even the most generous predictions. American Gaming Association (AGA) research


reports that the 34 legal sports betting states reached $6.14 billion in commercial revenue totals from January to August 2023, a 60.4 percent increase from January to August 2022. The $68.23 billion year-to-date handle-or total


bet over a specific time frame-topped 2022 by 21.6 percent. Minus any slowdowns, the AGA predicts total 2023 sports betting handle to exceed $100 billion. In 2023 America, celebrities now endorse


sports betting and the media promotes sports betting during all events. Corporate entities, including casinos, pay big money for the naming rights and advertisements on stadiums, arenas and playing fields. Of the 32 NFL football teams who play in 30


stadiums, more than two dozen are named for banks and other corporate sponsors. Two (the 73,208-seat Caesars Superdome in New Orleans and 65,326-seat Hard Rock Stadium in Miami Gardens) advertise very successful gaming companies. The sports media is a key player in how the


public views sports betting. Due to the newness of these programs, many news outlets have yet to set reporting standards for journalists. Ethical issues can arise for sports reporters


who spend much time with athletes and team organizations. They may have inside information, so whatever they reveal could impact the integrity of the bets and resulting wins/losses. Fortunately, that is changing. Groups like the Baseball Writers’ Association of America, and others, are working to develop sports betting reporting guidelines. Sports betting has only strengthened the


powerful economic impact for gaming properties/sites and the communities they serve. New York State launched legalized sports betting in July 2022 after three years of effort. The Empire State should enjoy enormous


future profits due to its size, population and multiple teams statewide. Legal play has motivated its millions of eligible players to return to play within its boundaries. At G2E 2019, former New Jersey Governor Chris Christie described his own mid-20s son’s and friends’ behavior before the New York launch. The group lived in New York City, across the Hudson River, in close proximity to northern


34 NOVEMBER 2023


New Jersey’s sports arenas. They traveled every week to wager on specific sporting events because New Jersey law required only that a player be within its geographic borders. Ironically, after such careful preparation, a significant number of underage New York kids still managed to gamble. This helped push state lawmakers to expedite the legalization process because getting it right and ensuring an honest transaction was a great incentive. New York-based PANDA Interactive Co-founder, Chief Strategy Officer Andrew Schupak claims, “Between 2020 and 2021, underage youth had access to offshore sites and social media that included sports betting content. Bookies acted like affiliates. Once reaching the legal age to bet in New York, they migrated to legal sites. They want the least risks and have no loyalty.” Legalization also attracts new players. “Each


year, new graduates come of age and expand the gaming ‘constituency’,” says Schupak. The issue of securing honest sports betting


for adults is not the only question. It is the underage marketplace that raises real concern. With advertising everywhere, it was almost inevitable that marketing to college students would create some controversy. At present, eight universities have betting


license deals with sports gambling organizations. And, according to the New York Times, more than 12 athletic departments have signed agreements with land-based casinos. These alliances give sports betting


companies the ability to advertise at athletic venues on campus. In some agreements, there may be direct email communications with students. That potential personal contact has raised both public and industry red flags. The AGA released an updated code of responsibility in late March that took effect in July. It targets potential college gambling problems with specific rules for AGA member companies.


More on this potential for problem gambling


issues next month. There are also varying types of agreements.


PANDA Interactive CEO Kevin April points to the University of Colorado (CU) as a landmark partnership. PointsBet, an Australian online sportsbook, recently negotiated a five-year sponsorship agreement with CU. This deal is the first partnership between the National Collegiate Athletic Association (NCAA) division one athletics program and a sports betting operator. What is the NCAA and what is its influence?


Formed in 1906, the NCAA has since split into multiple groups around college sports. It regulates student athletics at 1,100 American and Canadian schools. The NCAA also organizes college athletic programs’ 500,000 student athletes who compete. Historically, the NCAA has rejected sports


betting because of legitimacy concerns. After the May 2018 U.S. Supreme Court ruling, the NCAA softened its position. CU faculty athletic leaders envision a terrific alliance that offers opportunities amid a full awareness of problem gaming risks to student athletes. They believe PointsBet’s construction of its North American divisional office in Denver, Colorado will improve communications and accessibility. PointsBet will enjoy exclusive marketing rights


across the entire gaming category. In addition to combining gameday advertising and broadcasting, CU students will gain entrée to career opportunities in business and technology. If done correctly and responsibly, college


sports betting has an unlimited future. Sports is one of America’s greatest national passions and eligible fans will have options to bet on their favorite games and teams.


Look for Part Two of this article in the December issue of Casino International.


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