The Old Line State keeps making strides in its attempt to end partnerships between legal sports betting operators and educational institutions.
The Maryland House Ways and Means Committee passed Senate Bill 620 today, paving the way for a law that would restrict the relationship between sportsbooks and institutions of higher learning.
Senate Bill 620 and cross-filed House Bill 802 would prevent colleges and universities from doing business with sportsbooks or sportsbook marketing agents in exchange for compensation based on student participation.
In other words, universities and colleges would be prohibited from receiving bonuses or commissions associated with student signup or wagering activity in regard to sports betting in Maryland.
Industry and congressional pressure mounts
Maryland is one of several states rushing to address concerns about the cozy relationship between universities and online sports betting sites. Both SB 620 and HB 802 have been speedily working their way through Maryland’s legislature.
The urgency is, in part, due to a November New York Times exposé that highlighted the ongoing issue. The piece specifically identified a contract whereby PointsBet was paying the University of Colorado a $30 referral fee every time a student signed up through a UC affiliate code.
As a result of the article, PointsBet and the University of Colorado terminated that part of their clause in January.
Since then, there has been additional pressure from within the industry — and from the US Congress — to restrict the relationship between universities and sports betting operators. Earlier this week, the American Gaming Association (AGA) announced a revision to its “Responsible Marketing Code for Sports Wagering.”
The new guidelines ban college partnerships for the purposes of promoting student sports wagering. Meanwhile, US Senator Richard Blumenthal has also asked 66 colleges to provide information about their marketing relationships with sportsbooks.
Damage control
As a result of the pressure, sportsbooks and universities are already starting to reevaluate their relationships. Just today, PointsBet and the University of Colorado mutually agreed to fully cut ties.
And should Maryland see SB 620 become law, PointsBet’s relationship with the University of Maryland may suffer the same fate. Although the University of Maryland is not receiving incentives for student wagering, PointsBet has been an official partner of the school since December 2021.
With SB 620’s progress through Maryland’s Ways and Means Committee, the state is poised to be the first to restrict the relationship between colleges and sports betting providers. Maryland could soon have company, as both New Jersey and New York are currently considering similar bills.
