It’s official – PointsBet terminates its partnership with the University of Colorado. The American Gaming Association (AGA) prohibited establishing partnerships between sportsbooks and universities, and only a day after that, this already controversial partnership came to its end. It is related only to future partnerships, so it wasn’t a real reason for terminating this one, but despite that, this partnership came to an end.
The tensions and pressure had been rising for a long time since many politicians and problem-gambling advocates were against the partnership.
AGA’s decision didn’t impact the deal:
It lasted for three years since the deal was signed in 2020. Both parties joined one last time to express their opinion about the matter in a joint statement: “PointsBet and the University of Colorado have decided it is mutually beneficial to end their partnership at this time. Both parties are thankful for the joint efforts throughout the relationship and wish the best for each organization going forward.”
The decision to end collaboration between PointsBet and the University of Colorado was made even before AGA’s decision. However, we still don’t know the reason that lies behind this decision.
Relationship between universities and sports betting companies:
Richard Blumental, a U.S. Senator from Connecticut, asked 66 colleges and universities about their present or future partnerships with companies that offer sports betting services. Blumenthal was concerned about the number of universities that were willing to partner with sports betting companies since the students are mostly young people who aren’t even 21 years old, and they are at great risk of becoming problem gamblers.
However, the state of Colorado, where two universities partnered with sports betting companies, earned a lot from sports betting wagers. Only in January this year, the state collected $34.7 million on sports betting wagers since the tax is 10%. That money is used to fund the Colorado Water Plan, which ensures the state can provide all residents with clean drinking water that can be used for recreational purposes as well as agriculture, now and in the future.
The first partnership was the one between the University of Colorado and PointsBet. The University’s athletic director, Rick George, was sure that student-athletes would benefit from the deal. Next year, the second partnership was signed between the University of Denver and SuperBook, which is owned by a Colorado native tribe.
Apart from these two universities, only three universities in the whole country signed such a deal: Michigan State University, Louisiana State University, and the University of Maryland.
As predicted, the partnership was beneficial for the University of Colorado, which got a profit of $1.6 million from PointsBet. Additionally, whenever someone downloads the PointsBet’s app and places a bet via the promotional code, the University gets $30. This affiliate deal ended in January since the press was against it, and it impacted the University’s reputation.