PointsBet recently signed sports betting partnership with the University of Colorado that is creating space for some suspect financial incentives.

An interesting turn for NCAA

In September, a National Collegiate Athletic Association Division-I school signed a corporate partnership with a sportsbook for the first time. The NCAA has always been against sports betting legalization which makes the deal a pathbreaking event. However, it is important to note that the deal is technical with a part of the Learfield IMG College sports marketing operation called Buffalo Sports Properties LLC.

The financial terms of the deal between CU and PointsBet were not disclosed. However, Sports Illustrated got its hands on a copy of the contract which contains some suspicious financial incentives for the school.

What does the deal say?

In the five-year deal, the university will earn at least $1.625 million. It will also receive $30 for each bettor who opens an account with PointsBet using a school-specific promo code. This will essentially make the school act as an affiliate marketer for the sports betting operation. The deal could easily create some controversy and uproar among people who are still against the legalization of sports betting.

A majority of the school’s student body is under the legal betting age i.e. 21 years. Therefore, the school will have to be careful in marketing its promo code. According to NCAA rules, athletes and off-field personnel cannot bet. Draft legislation will also ban players from endorsing gambling products.

PointsBet deal bans the use of any athlete’s name, the image, or likeness without permission from the school. It also provides indemnity to the school if the athlete chooses to file a legal claim against the operator for using their name, image or likeness.

Marketing rights of the deal will include the PointsBet logo appearing on the videoboards of the football stadium multiple times. It would also be visible on ribbon boards and end zone LED screen. The operator has also been guaranteed TV visibility by the school. The stadium’s PA system will also give one in-game mention to the operator.