New Jersey Bans Sports Betting Partnerships at Public Colleges

Colleges, universities, booster clubs, and athletic departments will not be permitted to sign contracts for permission to advertise sportsbooks.

Ziv Chen

Last Updated: July 11, 2025 1:31 PM EDT • 2 minute read

New Jersey Bans Sports Betting Partnerships at Public Colleges — Pictured: Rutgers Scarlet Knights mascot Sir Henry as we look at public colleges and universities and sports betting operators being banned from making sponsorships. Photo by Mark J. Rebilas via Imagn Images.

New Jersey Governor Phil Murphy has signed Assembly Bill 4113, which prohibits public colleges and universities from creating promotional sponsorships with sporting wagering operators.

Under the newly established legislation, colleges, universities, booster clubs, and athletic departments will not be permitted to sign contracts for permission to advertise New Jersey sports betting and gambling operators in school venues, such as arenas, stadiums, and school-related media.

The legislation is the consequence of what lawmakers describe as the new trend of gambling companies approaching students as part of publicity campaigns.

“Young people are especially vulnerable to compulsive gambling and can have a difficult time breaking the habit once it becomes ingrained. This will help protect them from the negative influences of advertisements that promote the practice. Our college campuses should be places for learning, not underage gambling,” said Senator Joseph Cryan.

Cryan introduced SB 2155 in January 2024, which included a similar provision to AB 4113 and was substituted for the Assembly bill.

New Jersey internet betting tax to bring in $250 million

While New Jersey lawmakers change how gambling operators can advertise in the state, they have also increased taxes for many New Jersey sports betting apps and New Jersey online casino operators.

Previously, verticals were taxed at various percentages, including 15% for casino games, 13% for wagers, and 10.5% for fantasy games. All these will now be taxed at the same 19.75%.

The Senate and Assembly voted June 30 in support of the tax increase, then Gov. Murphy signed the legislation. The legislators supporting the legislation considered that neighboring states have very high taxes. For example, there is a 51% tax in New York and a 36% tax in Pennsylvania for online sporting wagering.

According to lawmakers, the amendment yields additional revenue of $250 million annually.

Sweepstakes casino prohibition

The Legislature in New Jersey has been busy focusing on the state's gambling activity and has also recently voted to ban sweepstakes casinos. The Senate voted in favor of Bill A5447 34-5 and has already passed the Assembly 69-10. The legislation now only awaits the signature of Gov. Murphy.

The Division of Consumer Affairs will supervise enforcement. It may investigate violations, order cease-and-desist actions, and refer cases to the Superior Court.

Operators will be penalized $100,000 for the first offense and up to $250,000 for repeat offenses, with one day's operations being considered as a different offense from the next.

New Jersey will become the sixth state in 2025 to implement the legislation, following Connecticut, Louisiana, Montana, Nevada, and New York. Governor Jeff Landry ultimately vetoed the initiative in Louisiana.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.