COLLEGE SPORTS BETTING
the Sherman Act by creating a monopsony under which the NCAA limited student-athlete compensation as an “unlawful restraint on trade.” Ultimately, the Supreme Court upheld the district court’s determination that the NCAA must abide by generally applicable anti-trust laws and therefore, could not enact rules limiting the cap on student-athlete compensation. The NCAA then developed working groups and initiatives to allow college athletes to be compensated for their name, image, and likeness (“NIL”). 8 These are often referred to as publicity rights. They do not allow the schools to directly compensate athletes, but instead open the doors to endorsement deals and advertising campaigns subject to the laws of each school’s state. 9 Professional athletes, by contrast, do not face the same hurdles to compensation. Lebron James, NBA superstar, will earn US$47.6 million in 2024. 10 For a more standard player, the NBA averages US$9.7 million in player salary. 11 This is aside from additional endorsement deals and advertising revenue. Wagering on college athletes, therefore, creates a further imbalance in the financial relationship between colleges and their athletes. Student-athletes, who have relatively little access to compensation, are now witnessing their school, their state, and the public making money off their performance through sports betting. Prop betting versus standard game propositions. Standard bets, often referred to as the “moneyline,” are simply wagers placed on who will win the quarter, half, game etc. Prop betting refers to the concept of betting on an occurrence, or non-occurrence of an event during a sports game that is unrelated to the game’s outcome. 12 In basketball, a bettor could wager on how many three-point shots Caitlin Clark will make
in a given game. Regardless of whether the Indiana Fever wins, if the bettor is right, they will be paid out. Prop bets dramatically expand the betting landscape because they can encompass nearly every aspect of a sporting event. For example, for a June 10, 2024 Major League Baseball Game (Rockies vs. Twins), prop bets include: Manuel Margot to get a hit (-210); Chris Paddack over 1.5 walks allowed (+155); Chris Paddack under 5.5 strikeouts (+115); and the list goes on. Because of the individual potential of each player, team, and game, prop bets can over-emphasize individual player performance. This offers the temptation among players to influence the outcome of events being bet on and is the reason that all sports ban players from betting on their sports. In the professional arena, sports betting tempts even the well- compensated. For example, Major League Baseball (“MLB”) banned San Diego Padres infielder Tucupita Marcano for life for placing over 350 bets and wagering US$150,000 on MLB- related sports betting. The National Basketball Association (“NBA”) issued a lifetime ban to Toronto Raptors player Jontay Porter for disclosing confidential information to bettors. 13 It has been reported that in at least one game, Porter left the game early, causing staggering wins on prop bets related to his performance. The debate on prop betting in college sports. The prop betting debate in college sports stands on two pillars: athlete safety and sporting integrity. In this spirit, NCAA’s president Charlie Baker called for the end of prop betting in college sports. 14 For athlete safety, Baker raised concerns
8 https://www.espn.com/college-sports/story/_/id/31740112/rule-changes-mean-athletes-schools-more 9 https://www.ncaa.org/news/2021/6/30/ncaa-adopts-interim-name-image-and-likeness-policy.aspx
10 https://www.statista.com/statistics/202939/nba-players-with-the-highest-salaries/#:~:text=National%20Basketball%20Association%20high- est%2Dpaid%20players%20in%20salaries%20%26%20endorsements%202024&text=LeBron%20James%20was%20the%20top,dollars%20in%20 off%2Dcourt%20income. 11 https://fansided.com/posts/what-is-the-average-and-median-nba-salary-for-2023-24-by-position-01hbrqp8mv6f 12 See https://www.swlaw.com/publications/legal-alerts/louisiana-bans-prop-bets-for-betting-integrity-and-athlete-safety 13 https://www.espn.com/nba/story/_/id/39962406/nba-bans-raptors-jontay-porter-gambling-violations 14 https://www.espn.com/college-sports/story/_/id/39820326/ncaa-president-charlie-baker-calls-ban-college-prop-bets
PAGE 8
IMGL MAGAZINE | SEPTEMBER 2024
Made with FlippingBook flipbook maker