Crypto Betting Ads Unlikely as New Jersey Moves to Ban College Sportsbook Partnerships

The New Jersey Assembly has approved a bill that would ban sportsbooks from forming partnerships with college sports programs to provide direct marketing and advertising.

Assembly Bill 4113, a carry-over bill from last year’s legislature, will now head to the Senate Higher Education Committee after receiving a unanimous 75 yeas from lawmakers. In order for the legislation to become law, it will need to pass a floor vote in the Senate and be signed by the Governor of New Jersey.

Direct vs. Indirect Marketing: What the New Jersey Bill Means for Betting Ads

The bill aims to “prohibit public institutions of higher education from entering into sports wagering partnerships with sports wagering operators or intermediaries.”

It has undergone amendments, which specify that a foundation institutionally related to a public institution of higher education is not prohibited in entering a partnership, so long as the partnership does not include direct advertising or marketing to students enrolled at that place of higher education.

It differentiates between direct and indirect marketing and advertising. Under the amended bill, direct advertising and marketing includes “marketing at on-campus locations and off-campus locations associated with the institution, and any electronic advertising or marketing explicitly directed to students enrolled in the institution.”

Connecticut Fails to Differentiate

This differs from the state of Connecticut, where proposed legislation fails to differentiate between ‘passive’ and ‘direct’ advertising when attempting to ban similar activity.

Neil Eskin, Executive Associate Athletic Director at the University of Connecticut said in a statement to lawmakers: “We are asking that you consider the difference between passive advertising and the direct solicitation of students by entities that operate in the gaming space. UConn is categorically against direct solicitation of students by or on behalf of these entities, but practices such as displaying the Mohegan Sun logo on the floor of Gampel Pavilion and displaying logos of Mohegan Sun and the Connecticut Lottery in the arena are standard practice in our industry and critical to financial viability.”

New Jersey’s amended bill also allows partnerships between higher education institutions and casino licensees, sports wagering licensees, or their contracted operators when the partnership is established for academic purposes or provides students with “experiential learning opportunities.”

A key definition in the amended New Jersey bill surrounds what constitutes a sports wagering partnership. It specifies including an athletic department, or ‘booster club’ of the institution. Further, it also adds “access to advertise in the institution’s stadiums and other facilities, in digital and broadcast sports content and through other means.”

The prohibition of sports sponsorships for collegiate teams is likely to have a heavy impact on sports funding given that traditionally betting partnerships are amongst the best-paid and most popular with athletics departments.

The bill’s goal, however, is to protect students from being exposed to gambling-related advertising and potential gambling-related harms. Assemblywoman Linda Carter, a primary sponsor of the bill, said in a statement: “Simply put, advertisements for sports betting on a college campus are unnecessary and can create harmful consequences.”

“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,” she continued.

Although crypto is growing in popularity, it’s unlikely that advertising will proliferate across the country until crypto casinos and sportsbooks gain traction, recognition, and regulation at a federal and state level.