College-geared sportsbook ad bills clear final hurdle in Maryland

Maryland legislators have given their approval to a trio of bills centered around the relationship between sportsbook operators, colleges and higher education institutions in the state.

Senate bills 620 and 621 and House bill 802 were passed to Maryland Governor Wes Moore’s desk for signing into law on Tuesday following the final day of the current legislative session.

Each piece of legislation has been extensively reviewed by committees in both chambers, with amendments discussed, dismissed, and introduced where needed.

The bills will come into effect from 1 July, and could significantly impact licensed operators’ marketing strategies in the state.

Senate bill 620 and its companion House bill 802 would stop all higher education institutions from entering into contracts with regulated operators if the respective institution receives “certain compensation” for student participation.

This includes any institution which limits enrolment to graduates of secondary schools, public and private institutions, and any institution where degree-level qualifications are awarded.

This provision focuses on contracts formed by those higher education establishments which are subject to public inspection, in accordance with the Maryland Public Information Act.

Senate bill 621 paves the way for the independent evaluation of sports betting content used by operators in the state, formalizing the requirements for the appointment of these individuals.

Requirements include demonstrable experience of “evaluating and rating” sports betting content, as well as an in-house auditing process maintained by licensed certified public accountants.

Evaluators must also have standards which cannot be adjusted, duplicated, or altered by individuals subject to evaluation, nor have any direct or indirect ownership or interest in the operator concerned.

The issue of college-geared sportsbook partnerships has come into sharp focus over the last six months following series of articles published in The New York Times regarding practices used by operators including Caesars and Barstool Sportsbook in their respective partnerships with colleges.

A petition was recently launched by members of the Michigan State University faculty calling for an end to its partnership with Caesars Sportsbook in order to better protect students from potential gambling-related harm.

Caesars, for its part, has said it will not pursue any further college-based sportsbook partnerships and allow its existing deals to lapse without extension.

Earlier this month, the American Gaming Association (AGA) amended its responsible gambling code of conduct with the aim of addressing this increased scrutiny on the sector and ward off any potential federal involvement.

AGA’s updated code now includes a prohibition on any college partnerships that promote, market, or advertise betting activity, other than to alumni networks, or partnerships that focus on responsible gambling initiatives or raising problem gambling awareness.

Sportsbooks would also be barred from signing so-called ‘name, image, and likeness’ (NIL) deals with amateur and college athletes as part of the revised code.