How will Legal Sports Betting Interact with College Football?

Week one of the NFL 2022 season is over, and as expected, all eyes are on the major league for now. However, college football also kicked off recently. It may not be all over every media channel and TV station, but there’s a diehard following of college football in America. So how does college football fit into the tzunami of legal sports betting that’s taking over the country??

Since the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA), sports betting has spread across the US. The NFL welcomed more betting commercials for each game and allowed networks to integrate betting odds and markets into pregame shows. It’s not uncommon to see the branding of top US sportsbooks at sports venues around the US. Everywhere you go, there is sports betting.

The only exception to this is college sports, specifically football. While some colleges have signed partnerships with sportsbooks, this is still an untapped market, with most of the top teams in the US without a partner. However, there is evidence this is changing, with US Integrity COO Scott Sadin expecting a “waterfall of partnerships” is imminent at the July SBC Conference.?

As the NCAA deals with younger amateur athletes, sportsbooks and colleges alike have been cautious about exploring the possibilities of these deals. FanDuel CEO Amy Kelly noted (also at the July SBC Conference) that many college sports fans are “underage”. However, it’s not like all fans of the NFL or NBA are of legal betting age.

Nearly a dozen schools have inked partnerships with betting brands, so this is clearly a change that is coming. If it is implemented safely and responsibly, college sports betting partnerships could benefit schools, sports programs, and sportsbooks.

Colleges with Betting Partnerships

It seems like every sports team, or sports league in the US has a partnership with a betting brand. Even a sports league as niche as Major League Fishing has penned a deal with Bally Bet. NCAA college football is definitely not a niche league but has warmed to the benefits of betting partnerships much slower.?

However, that tide is now turning. The NCAA now permits athletes to profit from Name, Image, and Likeness (NIL) rights. This has opened the door for other types of commercialization in college sports, including sports betting partnerships.?

PointsBet - University of Colorado

PointsBet set a precedent by partnering with the University of Colorado in September 2020, the deal helping the sports program minimize the impact of the Covid-19 pandemic. You will find PointsBet marketing across the college’s sports venues, through radio broadcasts of games, and social media channels.

In addition, PointsBet built its headquarters in Denver and worked with the University of Colorado to create a placement program to encourage students into technology careers.??

PointsBet - University of Maryland

The second college to sign a partnership with PointsBet was the University of Maryland in December 2021. This deal included advertising at the Capital One Field at Maryland Stadium, where the Maryland Terrapins play NCAA Division I football in the Big Ten Conference.?

It’s worth noting that PointsBet USA CEO Johnny Aitken made a point to mention “Sports betting education and safe gambling”, which was backed up by Maryland Executive Associate Athletic Director and Chief Strategy Officer Brian Ullmann. He noted the college was “looking forward to raising awareness and educating our student-athlete and University community about responsible gambling”.?

Caesars - Louisiana State University

Owned by the famous casino and resort operator Caesars Entertainment, Caesars Sportsbook had already impacted Louisiana by acquiring the naming rights to the Superdome. This stadium has hosted the Sugar Bowl every year since 1975. In September 2021, the sportsbook partnered with Louisiana State University (LSU).?

The focus of this partnership was very much college football, with naming rights for the Skyline Club at Tiger Stadium and signage around the venue. However, it was made clear the aim wasn’t to bring sports betting to college students. An ESPN source noted no plans for a retail sportsbook at the school. In addition, the sportsbook announced it wouldn’t market to students under 21 or highlight gaming offers in campus facilities.

Caesars - Michigan State University

Caesars signed with the Michigan State University Spartans in January 2022, including fan engagement, market, and responsible gambling commitments. Caesars is actively looking to expand responsible gambling education at the college, following guidelines from the Michigan Association on Problem Gambling.

The rest of the partnership matches other deals introduced by sportsbooks, including the naming rights for a premium seating area at Spartan Stadium, where the football team plays. The benefits for both sides are clear. Caesars increases its marketing in one of the biggest college football states in the US, Michigan. The school receives expert responsible gambling guidance from one of the most experienced operators in the US.??

Genius Sports

Not every deal has been with a sportsbook, with Genius Sports signing an agreement with the Mid-American Conference (MAC) to distribute its official data. The conference includes football teams like the Ohio University Bobcats and the University at Buffalo Bulls. The deal was confirmed a few weeks later when the NCAA confirmed that teams, leagues, and players could sell official league data as long as it was available to the public.?

This data is important as some states like Tennessee, Michigan, and Illinois require sportsbooks to include official league data. Every sportsbook in those states wanting to offer betting on the MAC must partner with Genius Sports. Many top betting sites already have these partnerships, as Genius Sports has a data deal with the NFL.?

Differences Between the NFL and College Football

Both are football, but there are huge differences between the NFL and college football, affecting the impact of sports betting partnerships.?

One of the main differences between the NFL and college football is there are more games in the NCAA. There are 32 NFL teams compared to over 130 FBS college football teams, and college football bettors can enjoy opportunities spread across more games. In addition, there are more big event games in college football with the Bowl games, which provide more excitement for bettors.

Another side effect of only 32 NFL teams is that some states don’t have a local franchise to support. However, pretty much every state has a college football team to get behind. While the impact of this can be limited by states not legalizing betting on local college teams, there are markets across the US where passionate sports fans can’t bet on their favorite team. This includes states like Alabama, South Carolina, and Kentucky.

Depending on your state, there are some differences between the NFL and college football from a purely betting standpoint. In states like Colorado, you can’t place prop bets on the performance of individual athletes. Player props are banned to protect young athletes from the pressure caused by sports betting.

A Cause for Cautious Optimism

It seems like the expansion of sports betting into college sports is inevitable. Two of the US’ top brands have already committed to testing the waters. The biggest distributor of official league data in the US, Genius Sports, has also seen the market’s potential with its first partnerships.??

It’s hard to get exact figures on how much is wagered on sports betting, as states like Nevada group the NFL and college football betting handles together. However, ESPN estimated in 2020 that $1 billion is wagered on NCAA football every year. More money could help colleges and provide responsible gambling education through sports betting partnerships.?

State lotteries like the North Carolina Education Lottery have successfully used gambling to fund schools for years. Sports betting partnerships with colleges could have the same impact if betting brands remain committed to promoting responsible and safe gambling.?

Keeping the gambling market out of college campuses seems like the most responsible path forwards, as demonstrated by Caesars at LSU. In addition, sportsbooks making commitments to improve the local community while promoting responsible gambling, like PointsBet’s career placements in Colorado, is another excellent way to maximize these partnerships.?

It’s an exciting time for college sports betting fans, as more states allow bettors to wager on their favorite teams. With increased exposure in the US and greater revenues, states without major league teams that have resisted legalizing betting may be tempted to tap into the market.?