Senate Bill 206 signed
The Fair Pay to Play Act was signed into law this week in California, which could potentially impact future sports betting legalization in the state.
Senate Bill 206, which received bipartisan support, was signed by Governor Gavin Newson. It was originally introduced by Senators Steven Bradford and Nancy Skinner.
Many professional athletes have publicly praised this move, including NBA legend LeBron James.
Traditionally, the National College Athletics Association (NCAA) has banned college athletes from accepting compensation for participating in sports.
Significant step forward
Governor Newson believes this move by California will be copied across the country in the coming years as it “transcends geographic and partisan lines.”
He went to highlight how athletes deserve this form of compensation. He spoke about the sacrifices these college athletes make, putting their future career prospects, health, and many years on the line to compete in sport.
Newson spoke about the billions of dollars colleges make off their student athletes’ sacrifice and success without the athletes earning anything. He said:
That’s a bankrupt model – one that puts institutions ahead of the students they are supposed to serve. It needs to be disrupted.”
Potential for sports betting
The NCAA tried to halt Fair Pay to Play legislation in California. However, nobody in either the Senate or the Assembly opposed this bill.
When there was a push to end the federal ban on sports betting, the NCAA was also staunchly opposed. The nonprofit organization had concerns about sports betting undermining the integrity of competitions and potentially jeopardizing the welfare of college athletes.
According to the NCAA, as college athletes have no income, they may be more tempted to participate in sports betting and potential match-fixing.
concerns about sports betting undermining the integrity of competitions
However, with the Golden State now allowing college athletes to be compensated through the likes of endorsements, this monetary pressure to engage in sports betting will no longer be as prevalent.
Therefore, this is now one less issue that stands in the way of legal sports betting in California.
Native tribes remain the main obstacle in the way of this potentially lucrative sports betting market. The tribes hold a lot of influence in the state and they do not want legal sports betting to jeopardize their current operations.