New Jersey Fines FOX Bet $80,000 for In-State College Wagers

This isn't the first time that New Jersey has fined an operator for allowing wagers on programs located within the Garden State.

New Jersey’s Division of Gaming Enforcement issued FOX Bet a fine of $80,000 for in-state college bets placed during 2021 and 2022. New Jersey is one of several legal sports betting states that prohibits the placement of bets on college teams within the state. 

According to New Jersey’s petition, FOX Bet accepted wagers on two basketball games involving Monmouth University and Farleigh Dickenson University in 2021. In 2022, FOX Bet also allowed wagers on a basketball game played by Seton Hall University.

The penalty comes just as FOX Bet begins to shutter its US sports betting operations. In July, Flutter Entertainment PLC and Fox Corp. announced FOX Bet would be phased out by the end of August. It’s possible New Jersey wanted to secure its fine before FOX Bet faded into the sunset. 

This isn’t the first time that New Jersey sports betting encountered these issues. Last year, the Garden State fined BetMGM $25,000 for in-state bets placed in 2021. The Division of Gaming Enforcement identified two bets placed on a 2021 basketball tournament game between Niagara University and Marist College. BetMGM later offered a parlay involving the Rutgers basketball team, which was bet on by two individuals before BetMGM ultimately withdrew it. 

New Jersey isn’t the only state to issue fines this year for in-state college bets. In March, Massachusetts fined Plainridge Park Casino (Barstool Sportsbook), MGM Springfield (BetMGM), and Encore Boston Harbor (WynnBet) for illegal in-state college bets. 

Barstool Sportsbook got a $20,000 fine for accepting 33 wagers on a basketball game between Merrimack College and Long Island University. Merrimack was miscoded as a Florida college, while BetMGM allowed wagers on the Harvard Crimson against both Yale and Brown. Meanwhile, WynnBet offered a parlay involving Boston College. WynnBet, however, immediately notified the Massachusetts Gaming Commission, which resulted in a lower fine of $10,000. 

So far, more than a dozen states prohibit game bets from online betting sites on in-state colleges. But some states — like Arizona, Colorado, Virginia, and Vermont — allow in-state game bets, but not in-state college prop bets. Nebraska allows in-state game and prop bets — but not if the game is played in-state. 

Epicenter of Regulatory Scrutiny

Regulators are focusing on the relationship between sports betting and colleges, and it goes beyond the issue of in-state college betting. Marketing sports betting to college students is a growing problem across campuses. Earlier this year, PointsBet and the University of Colorado terminated a partnership, citing potential conflicts of interest. Meanwhile, Caesars Sportsbook and Michigan State ended their deal prematurely for the same reason.  

College athletes and coaches have also been caught running afoul of the NCAA’s sports betting rules. Since 2018, the NCAA has identified roughly 175 violations of its guidelines. That number could grow even higher as more states adopt legalized sports betting.