The state of New Jersey, a pioneer in legalizing sports betting across the United States, is now exploring new measures to restrict certain types of wagers. A proposed bill in the state legislature aims to prohibit proposition bets—commonly referred to as “prop bets”—that focus on the individual performance of college athletes.
The initiative is a response to growing concerns over harassment and undue pressure faced by college athletes from gamblers. Instances like Auburn quarterback Payton Thorne receiving refund requests via Venmo after a poor performance or North Carolina basketball player Armando Bacot being flooded with angry messages on social media exemplify the problem.
Protecting College Athletes From Harassment
Advocates for the legislation argue that college athletes are more vulnerable to harassment compared to professional players due to their accessibility. Unlike professionals, student-athletes often share living spaces and facilities with their peers, making them easier to reach.
“Not all of what has come from the legalization of sports betting has been positive,” noted state Senator Kristin Corrado, cited by Associated Press, emphasizing the need for additional safeguards for student-athletes.
The bill proposes to eliminate bets on specific athlete statistics, such as touchdowns, rushing yards, or rebounds, during college games. If enacted, New Jersey would join 13 other states, including Ohio, Maryland, and New York, in banning these types of wagers.
Austin Mayo, assistant director of government relations for the NCAA, highlighted the urgency of the issue. According to Mayo, one in three college athletes in highly bet-on sports has reported receiving harassment from gamblers. The NCAA has called for a nationwide prohibition on such bets.
Industry Concerns Over a Ban
While the bill has garnered support from proponents of athlete welfare, critics argue it could drive gamblers toward illegal betting platforms. Bill Pascrell III, a lobbyist representing gambling and sports betting firms, stated that prop bets account for only 2% to 4% of the legal sports betting industry.
“When we ban any type of bet, particularly those that had been legalized, we’re pushing the bettor to the black market,” Pascrell explained, voicing concerns about the unintended consequences of such restrictions.
Currently, New Jersey allows betting on college games but has specific limitations. Wagers on in-state college teams or games hosted within the state involving out-of-state teams are prohibited. Despite these restrictions, bettors have turned to offshore sites or traveled to other states to place wagers on New Jersey-based teams, particularly during high-profile tournaments featuring Seton Hall or St. Peter’s.
Legislative Path Forward
The bill passed through an Assembly committee on Thursday and now awaits further approval from both chambers of the New Jersey legislature before reaching Governor Phil Murphy for final sign-off.
New Jersey’s pioneering role in the legalization of sports betting began with a lawsuit that led to the 2018 Supreme Court decision allowing states to authorize sports wagering. Since then, 38 states have legalized sports betting, with Missouri expected to become the 39th.
If enacted, the legislation would mark another significant step in addressing the ethical and practical challenges posed by the rapid expansion of legal sports betting in the United States.
