Gambling Industry Adopts Code Banning College Betting Partnerships and 'Risk-Free' Promotions

Four bans, one deadline: July 1 for existing campaigns
The gaming association's new code takes effect immediately, with existing campaigns allowed to run until July 1.
Mark

What actually changes for a sportsbook under this code?

Mimi

Four big things: no college partnerships, no payments to college or amateur athletes for name, image or likeness, no "free" or "risk-free" labels on promo bets, and ads only where about 73.6 percent of the audience is expected to be 21 or older.

Luke

And it's voluntary self-regulation, right? The association says all its members agreed, but the reporting doesn't describe any enforcement.

Mimi

Correct. The article doesn't say how it will be enforced. It does say the association will review the code annually.

Mark

Why now?

Mimi

The article ties it to criticism from regulators and addiction specialists, and to states acting. New York adopted rules in February, and Ohio has fined companies.

Luke

Miller says the goal was always to update proactively. That's his framing. The timing alongside the criticism is what the reporting shows, and he himself conceded the industry has taken some jabs.

Mark

What about the existing college deals?

Mimi

Five partnerships are named in the piece as promoting betting. The code lets existing campaigns run until July 1, but the article doesn't say what happens to the deals themselves.

Luke

Right, that's unknown. Colorado ended its referral bonuses in January, yet the broader PointsBet deal remains.

Mark

Does this settle the political debate?

Mimi

Not really. Tonko's bill would ban online sports betting ads entirely, and Blumenthal has asked 66 schools for information.

Luke

Those are a bill introduced and a letter sent. Nothing there says either will pass or change anything yet.

  • An industry that spent years saturating screens and campuses now finds its own advertising practices under scrutiny from every direction.
  • Five existing college partnerships, including deals at Michigan State, LSU, and Colorado Boulder, are suddenly unwinding under the weight of underage exposure concerns.
  • The association has moved to write its own rules before states and Congress write them for it, with new ad restrictions binding every member immediately.
  • Existing campaigns get a grace period until July 1, while a New York ban, Ohio fines, and a federal bill to end online sports betting ads keep the pressure rising.

On a Tuesday in late March, the American Gaming Association, the trade body speaking for America's commercial gambling companies, announced that its members had agreed to a new code of responsible marketing. Its rules end the familiar pairing of sportsbooks with college campuses, bar payments to athletes for their likeness, and retire the seductive language of 'free' and 'risk-free' wagers. The industry is responding to a long accumulation of unease: legal betting now spans 33 states and the capital, reaches many young fans who are not yet old enough to wager, and has drawn sharp warnings from regulators and addiction specialists. Whether this self-imposed restraint will satisfy lawmakers who are already drafting tougher limits remains an open question.

On Tuesday, the American Gaming Association told the Associated Press that the country's gambling industry was adopting a new code of responsible marketing. Under its terms, sportsbooks may no longer partner with colleges to promote betting, cannot pay college or amateur athletes for the use of their name, image, or likeness, and must stop describing promotional bets as 'free' or 'risk-free.' Every member has agreed to the rules, which take effect immediately, though campaigns that conflict with them may run until July 1.

The changes arrive as legal sports betting, now operating in 33 states and Washington, D.C., has drawn growing criticism. The code also requires that anyone appearing in a sports betting ad be at least 21, and limits advertising to media where at least 73.6 percent of the audience is expected to be adult. Bill Miller, the association's president and CEO, acknowledged that the industry had taken some hits and said the code would now be reviewed every year.

The college provisions reach five existing partnerships. Louisiana State University had emailed students, some under the legal age, urging them to place their first bet. The University of Colorado Boulder ended a referral bonus program in January, though its broader deal remains.

The code follows regulators who have already acted. New York banned ads sent to people under 21, and Ohio fined sportsbooks and DraftKings over their marketing. In Washington, Rep. Paul Tonko has proposed banning online sports betting ads outright, while Sen. Richard Blumenthal has asked 66 colleges how they are preventing student gambling and addiction. The July 1 deadline and these pending bills mark what comes next.

On Tuesday, the American Gaming Association told The Associated Press that the U.S. gambling industry is adopting a new responsible marketing code. Under it, sportsbooks can no longer partner with colleges to promote sports wagering. They also can't pay college or amateur athletes for use of their name, image or likeness, and they must stop calling promotional bets "free" or "risk-free."

The association is the national trade association for the commercial gambling industry, and all of its members have agreed to the rules. It says the changes are needed to keep pace with legal sports betting, which now operates in 33 states plus Washington, D.C. The code also requires that anyone shown in a sports betting ad be at least 21. Advertising is limited to media where at least 73.6 percent of the audience is reasonably expected to be 21 or older.

The rules take effect immediately, with one allowance: companies whose existing campaigns would run afoul of them may continue those campaigns until July 1.

Bill Miller, the association's president and CEO, said the group has always put a high bar for responsible advertising and consumer protection first. He acknowledged that the update reflects areas where the industry has "taken some jabs." He said, though, that the goal was always to update the code proactively, and the association will now review it every year.

Keith Whyte, executive director of the National Council on Problem Gambling, praised the changes. He called the code an important standard for the industry and pointed to two concerns behind it: many sports fans are underage, and people who bet on sports have higher rates of gambling problems.

The college provisions touch five existing partnerships between the industry and schools that promote or advertise betting. Michigan State University has a deal with Caesars Entertainment. Caesars also has one with Louisiana State University, which led the school to email students, some too young to bet legally, urging them to "place your first bet (and earn your first bonus)." The University of Colorado Boulder signed a 2020 deal with PointsBet that paid a $30 referral bonus whenever someone signed up with the university's promo code and placed a bet. The university ended those bonuses in January, but the broader deal remains. PointsBet also has a deal with Maryland, and Superbook has one with the University of Denver.

The code follows pressure from regulators and addiction treatment specialists, and some states are already requiring what the association now adopts on its own. In February, the New York State Gaming Commission prohibited ads sent to people under 21 and banned wording like "free" or "risk-free," something most major sportsbooks had already dropped. Ohio recently fined three sportsbooks over such terminology and fined DraftKings for mailing ads to people under 21. Massachusetts and Pennsylvania also ban the language. New Jersey has a pending bill to bar sportsbook partnerships with public colleges and universities, and another that condemns the over-proliferation of pro-gambling ads in the state.

In Washington, Rep. Paul Tonko, a New York Democrat, has introduced a bill that would prohibit online and digital sports betting advertising. He said that since the Supreme Court legalized sports betting, ads have run rampant, with companies spending billions to reach every screen, and that Congress must reel in an industry capable of widespread harm. On Monday, Sen. Richard Blumenthal, a Connecticut Democrat, wrote to 66 colleges and universities. He asked about their efforts to form sportsbook partnerships, prevent underage gambling among students, and treat gambling addiction.

The July 1 deadline for existing campaigns is the next marker, along with the state bills and the congressional proposals still pending.

Congress must take the necessary steps to reel in an industry with the power to inflict real, widespread harm on the American people.
— Rep. Paul Tonko, D-N.Y.
The code is important because many sports fans are underage, and people who gamble on sports have higher rates of gambling problems.
— Keith Whyte, National Council on Problem Gambling (paraphrased)
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