LSU ends Caesars deal as Louisiana moves to ban colleges from promoting sports betting

The Louisiana State University (LSU) has decided to terminate its seven-figure partnership with Caesars Sportsbook following the passing of Senate Bill 191, which prohibits state colleges and universities from engaging in marketing or advertising relationships related to sports betting.

The bill, which passed the House on Tuesday, has been sent to Governor Edwards for consideration. The multi-year partnership between LSU and Caesars was announced in September 2021, prior to the implementation of Louisiana's sports betting law.

Facilitated by PlayFly Sports, LSU's third-party multimedia rights holder, the agreement granted Caesars Sportsbook naming rights for the newly established Caesars Sportsbook Skyline Club at Tiger Stadium.

Additionally, Caesars Sportsbook received signage placements in Tiger Stadium, the Pete Maravich Assembly Center, and Alex Box Stadium, as well as an exclusive presence on the LSU Sports Mobile App. The partnership also granted broadcast and digital sponsorship rights.

However, the deal, along with similar agreements at other universities, faced national scrutiny, including a New York Times article that highlighted mass emails sent by LSU to students promoting betting through Caesars Sportsbook.

Caesars executives acknowledged that the email was mistakenly sent to underage students. In response to concerns about responsible marketing in the industry, the American Gaming Association introduced new regulations to its "Responsible Marketing Code" in March.

These regulations explicitly prohibit college partnerships that promote or advertise sports wagering activity. State Senator Gary Smith, D-Norco, proposed Senate Bill 191 to incorporate these rules into Louisiana law.

"When we saw that, it really kind of dawned on us that we're glad the industry is taking their own approach to this, but there's probably something we should have done in the first place here in Louisiana," said Senator Smith, as per The Advocate. "Just to keep that separation between some of our youngest individuals, who are just hitting that legal age, and the industry."

The unexpected revenue generated by sports betting in Louisiana prompted the need for legislation to address the issue. Senator Smith emphasized that SB 191 aims to align with the American Gaming Association regulation while safeguarding college students from potential negative influences. "We're generating more than we thought it would generate, and that means people are playing more than we thought they might," Smith explained.

"So many deals revolve around college sports, and we want to try and keep that separation, especially for our students. We don't want them tied up in the middle of that with advertisements seeming like they are the sponsor of the school or the preferred site of the school."

Jim Henderson, University of Louisiana system president, expressed support for the bill as it aligns with Responsible Marketing Code regulations. He emphasized that the UL System currently has no agreements with sports betting industries, and the legislation will not impact the operation of the universities within the system.

"We’ve got some cognitive dissonance there because why would we be signing on to a marketing agreement when the majority of the market that we’re going to be sharing it with are not legal participants in the gaming industry?" Henderson said. 

"It certainly won’t impact our institutions in a negative way and it won’t have an impact on the primary purpose for our institutions, which is students," he added, as per The Advocate.

The bill does include an exception for alumni networks that focus solely on responsible gaming initiatives or gambling problem awareness in their promotional content. 

According to recent survey data released by the NCAA, 67% of on-campus students participate in sports betting, and 58% of all surveyed students between the ages of 18 and 22 have placed a bet at least once.

Senator Smith views SB 191 as a necessary protection for college students rather than a sweeping change in how sports betting is promoted or advertised for most Louisiana residents.

"It's pretty basic in that it's not going out there and making some sweeping change; we're probably going to be playing catch-up with a few of these things as the industry evolves," Senator Smith remarked.

"The industry has evolved and grown really quickly, so this is one of those things where we want to get in there and take care of this before it changes anymore," he concluded.