- Colleges that field athletes who formerly played professionally or received gambling violations would be fined under the Fair Play Enforcement Act.
- The proposed bi-partisan bill would issue tax penalties onto colleges starting at 5% of the school’s gross athletics receipts and escalate for every violation.
OMAHA, Neb. – U.S. Representatives Adrian Smith and Brendan F. Boyle introduced the Fair Play Enforcement Act, which would penalize colleges for fielding athletes who played professionally or gambled on college sports. The bill aims to protect the integrity of college athletics in the midst of a handful of schools seeking to allow former pros to return to college.
The bill holds colleges and universities accountable for knowingly allowing athletes to play that participated in sports betting on college sports or was rostered by a professional sports team. However, a player that went pro in one sport could technically return to college for a different sport without punishment since the restriction only applies to one specific sport.
The Fair Play Enforcement Act would impose a 5% tax on the school’s total gross athletic revenue, which includes ticket sales, media rights, sponsorships donations, merchandise, and many other forms of revenue that go towards the school’s athletic program. For a big-time school like LSU, who attempted to add multiple players that had previously signed NFL contracts, a first offense would be north of $10 million.
Since the bill’s excise tax penalty escalates to 10% for a second offense and 20% for any following offenses, that could mean fines of more than $20 million for a second violation and eventually over $50 million for a third.
“College athletics have a long history of bringing people together, fostering competition, and teaching us what it means to represent something bigger than ourselves. Unfortunately, recent developments continue to put the values and traditions that make college sports unique at risk. I introduced my Fair Play Enforcement Act to ensure that colleges and universities uphold fair competition and preserve the values that have long defined college athletics for generations to come,” said Smith in a statement.
Brendan F. Boyle, who also introduced the bill, said that “College sports depend on honesty and fair play. Schools should not be fielding players who have bet on games or who have been on professional sports teams. Our commonsense legislation creates a financial consequence for schools that cross that line and helps protect the integrity of college athletics.”
The bill doesn’t explain if trading college sports on prediction markets falls in line with betting on college sports with sportsbooks. Adrian Smith is listed as a co-sponsor for the PREDICT Act, which focuses on preventing government officials from insider trading with prediction markets, so he’s well versed in the topic.
