NCAA requires sportsbooks to abide by strict standards, including a prohibition on negative prop bets
The men’s NCAA Tournament reaches its biggest stage this weekend with the Final Four at Lucas Oil Stadium in Indianapolis, just blocks away from where the governing body for major collegiate sports is suing DraftKings over the latter’s use of phrases like March Madness and Sweet Sixteen, which the former has trademarked.
The tournament has long been a big event for bettors, even before the U.S. Supreme Court overturned PASPA nearly eight years ago. Now, gamblers put down billions of dollars on the games, performances within the games, and futures markets tied to the tournament through DraftKings, FanDuel and other licensed operators.
A year ago, Genius Sports announced a new agreement with the NCAA that would allow the London-based sports technology and integrity company to give sportsbooks access to official NCAA data in deals that would also include use of NCAA trademarks. However, the sportsbooks agreeing to a set of strict guidelines is a requirement for these deals.
To date, no sportsbook, including DraftKings, has agreed to the NCAA restrictions and integrity standards,” wrote Chris Termini, the NCAA’s vice president for championship business affairs, in a March 26 declaration to the U.S. District Court in Indianapolis.
DraftKings and FanDuel opted out of a similar arrangement Genius has with the NFL, leaving the league without a sportsbook sponsor for the first time since 2021, Sports Business Journal reported this week.
What the NCAA Requires for Using Data, Trademarks
Because of its stance on gambling, the NCAA does not partner with sportsbooks like major professional leagues do. In the lawsuit against DraftKings, the NCAA states the agreement with Genius Sports protects the integrity of its games.
However, to use the official data and trademarks, sportsbooks must agree to a strict set of standards, which includes a ban on “high-risk prop bets” on college sports, such as an under bet for a specific player’s point total, and a pledge to cooperate with NCAA investigations by sharing geolocation and other betting information. Sportsbooks also must agree to ongoing monitoring and to support the NCAA’s responsible gambling campaign.
“The result is straightforward: sportsbooks must opt into NCAA integrity standards or forgo access to official NCAA data… It is unfortunate that the sportsbooks, including DraftKings, are unwilling to accept these restrictions,” Termini added in his court statement.
Most states do not require their licensed sports betting operators to use official league data. Even states that do make exceptions when licensees cannot feasibly access official data.
In addition, such states as Louisiana, Maryland, and Ohio have taken the initiative to ban college athlete prop bets outright. Earlier this week, the Kentucky General Assembly passed a bill that would bar its licensed operators from offering under prop markets on college players.
Baker Lashes Out
On Friday, NCAA President Charlie Baker took to social media to respond to an article by Pat Forde for SI.com regarding the online abuse student-athletes receive.
Forde’s piece referenced a recent NCAA survey that showed 52% of all athletes polled believe sports betting leads to unfair public ridicule.
“The trash being directed at young people via social media is vicious & disgusting,” wrote Baker. “The gaming industry & social media platforms’ dismissiveness of this kind of abuse is outrageous.”
DraftKings Case to Continue
The NCAA sought a temporary restraining order against DraftKings in hopes of blocking the Boston-based gaming company’s use of trademarks for this tournament. That request was denied, but U.S. District Judge Tanya Walton Pratt noted the organization may eventually succeed.
“With further discovery the NCAA may be able to show they are entitled to a preliminary or permanent injunction, and those claims remain pending,” Pratt wrote.
DraftKings was not the only sportsbook to use NCAA trademarks and logos. Both FanDuel and BetMGM also did, though they removed their references shortly after the NCAA filed its lawsuit against their competitor two weeks ago.
StoneTurn, an investigative firm hired by DraftKings for this case, reported to the court that it found similar usage at Bally Bet, bet365, Bet Rivers, Caesars and Fanatics. It also found them at offshore sites Bovada and BetWhale.
As of Friday, the NCAA has yet to file a lawsuit against any other gaming company.
Even after the winner cuts the nets down in Indianapolis late Monday night, the NCAA v. DraftKings case will continue. Earlier this week, a magistrate set a pretrial conference for June 1.
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