5/14 Forever: Why Some States Prohibit Betting on Local College Teams

One aspect in which states vary widely is where you can and can’t bet on games featuring local college teams.

Dimers.com writer Michael Krumholtz takes us through the where and why this is the case.

Some states outright prohibit you from betting on college teams based in the state and/or college games of any division that are being played in the state. Other states will allow you to bet on a local college team, but you cannot place player prop bets. This is an apparent effort to reduce the risk of players being influenced by outside money.

College athletes have been considered amateurs since the 1800s, but as we all know now, those days are over.

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As we inch closer to college football season in the fall, it’s essential to know which states will allow full betting and which ones have limits. Let’s go through the places that don’t allow betting on in-state teams and find out the reasons why lawmakers have decided to limit bettors.

What states can’t bet on their college sports teams?

One of the major reasons states aren’t allowing bettors to wager on their local college teams is the influence of school administrators. Many big public universities have sizable political sway in their states. School officials have leveraged that to convince lawmakers to make clauses in sports betting regulations prohibiting betting on the state’s college teams. 

Their theory is that amateur athletes could be swayed by gambling money in ways that pro athletes wouldn’t be. In the view of university officials and some politicians, this serves to “protect” the student-athletes.

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In fact, in states like Illinois, these clauses to prohibit betting on Illinois universities were used as a negotiation tactic when getting the bill through the legislature. The middle ground agreement largely avoided having college administrators lobby against the bill. Illinois presents a unique case as you can’t bet on the University of Illinois or other local collegiate games online, but you can do so in person at a retail sportsbook.

New Jersey, Virginia and Oregon are some notable states where you cannot bet on any aspect of in-state college teams online or in person.

States that do offer betting on their local college teams

Luckily for bettors, not all states have fallen into this line of thinking that college players will be corrupted by legalized betting.

Pennsylvania, Colorado and Michigan are some notable ones that have had success with legalized sports betting and have never imposed limits on bettors who want to wager on their favorite in-state teams. 

Many of these states do, however, prevent you from betting player props for local college teams. But, in Michigan, there are absolutely no limits when it comes to college bets. 

Of course, these states have yet to have a match-fixing controversy among college players. Realistically, there would be little motivation for star players to do so as they’d be risking their scholarship, their future in the sport and any current or future NIL deals they may have. 

For smaller states that don’t have any pro teams, they’re leaving far too much money on the table keeping college sports off-limits.

Bettors in a place like Oregon (which currently does not allow for betting on the University of Oregon or other in-state schools) are going to be much more inclined to bet on their Ducks, especially since they have no in-state NFL team to bet on.

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— The Oregonian (@Oregonian) February 20, 2022

That’s why it’s likely that many of the states that have already banned betting on local colleges will eventually overturn these prohibitions. Soon, the general population will get more comfortable with sports betting and we won’t think of college football and basketball players making millions from NIL deals as amateurs certain to be corrupted by gambling. 

For now, those in places like Oregon or New Jersey who want to bet on their in-state teams will have to take quick trips across borders to neighboring states to get around the law.

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