NJ Proposal Would Ban Public Colleges from Betting Deals

Many states across the United States currently prohibit wagering on college sports competitions. Fears about the impact of betting on young athletes and potential concerns related to addiction are among the main reasons why some states considered such a ban.

New Jersey, one of the states that has a robust gambling sector, offering online sports betting and iGaming, as well as retail wagering and casino, is considering changes that would prohibit betting companies from joining forces with public colleges and universities.

Bill Seeks to Stop Colleges and Universities from Signing Deals with Betting Companies

That’s the case under the proposal, Assembly Bill 4113 (AB 4113), a bill that ultimately seeks to protect students by enforcing a prohibition on betting partnerships with colleges across the state. The bipartisan bill’s subsection A recognizes sports wagering partnership as a “partnership or contractual agreement between a sports wagering operator or intermediary and a public institution of higher education.”

The proposal acknowledges that such a partnership would enable a betting company to advertise via the education institution’s facilities, including stadiums and buildings, as well as “other means.” Per AB 4113, a “public institution of higher education” would not be permitted to sign such partnerships with a sports betting operator.

“A public institution of higher education shall not participate in a sports wagering partnership as defined by subsection a. of this section,“

reads New Jersey Assembly Bill 4113

The Proposal Gained Traction Recently

It was last spring when AB 4113 was initially introduced and referred to the Assembly Higher Education Committee. Then, in the autumn, the bill has gone through an amendment and its second reading. Most recently, last week, the bill was passed by the Assembly with an overwhelming majority of 75 votes in favor. Subsequently, the proposal was referred to the Senate’s Higher Education Committee where it will go through further review and consideration.

Assemblywoman Linda S. Carter, a primary sponsor of AB 4113, who was recently interviewed by NJ Spotlight News, spoke about the importance of the proposal. “Simply put, advertisements for sports betting on a college campus are unnecessary and can create harmful consequences,” she said. Moreover, Carter pointed out: “We must protect our students from the risks of gambling addiction by keeping these types of promotions off of campuses, where young adults are most vulnerable.”

While the bill successfully cleared the Assembly only recently, lawmakers in the state remain divided on a proposed gambling tax hike. Gov. Phil Murphy called for changes to the tax rate on online sports betting and iGaming, seeking to increase the rates from 13% and 15% to 25%.