The University of Colorado stands to receive at least $1.625M as part of its five-year advertising agreement with sports betting company PointsBet.
According to a copy of the contract obtained by sources, PointsBet will make quarterly payments to CU until June 2026. The payments are due every 1st day of July, October, January and April. They escalate every year, beginning with $76,250 in the first year to $86,250 in the fifth year. The five year annual totals are $305,000, $315,000, $325,000, $335,000, and $345,000.
Aside from the quarterly payments, the University of Colorado will receive a referral fee of $30 for every new customer it sends to PointsBet. The more Colorado sports betting client that CU can get, the more money it will receive under its “affiliate” role. These new customers are required to enter a CU promo code which then triggers $30 to the school’s account.
In exchange for the payments, PointsBet will receive advertisement at Sporting events in Colorado, including the school’s football stadium. Every CU football broadcast must include a segment featuring the gambling company and a 10-second live mention during football games. The football stadium will have the PointsBet logo on both videoboards during home games plus a four-minute exposure on CU ribbon boards and end zone LED screens. The agreement is for regular season games with every 30-second exposure during the postseason costing $600 for PointsBet.
First Gambling Partnership
Last month, CU signed the first partnership between an NCAA College and a gambling company. The deal was a major turnabout for the NCAA which has fought very hard against the legalization of sports betting. Although Colorado sports betting was approved last November, the NCAA’s rules ban sports wagering among athletes, coaches, and administrators.
Impending legislation on compensation of athletes could cause more inequality as it relates to gambling. The NCAA may also prohibit athletes from endorsing gambling companies in its legislation governing NIL or name, image, and likeness.
However, there is no prohibition on universities entering into gambling agreements. But the University of Colorado consulted the NCAA and the PAC-12 Conference before it signed the PointsBet deal. Under the deal, PointsBet is prohibited from using a CU athlete’s name or image without approval from the university, and the school is not liable if an athlete files a claim against PointsBet for using their name, image, and likeness (NIL).