For many years, the NCAA has been lobbying lawmakers (both local and federal) to bring a ban on player prop bets for college sports games. The idea is not an unpopular one, yet these things take time to pass their way through legislative houses, even when there is widespread support. Some states have already taken action, yet in lieu of a federal ban, the NCAA has found another way to get sportsbooks to play the way it wants – by withholding data.
To explain, let’s first look at what the issue is. A player prop bet – or proposition bet – is effectively a wager on a player hitting a specific milestone in a gain, like passing yards or touchdown passes in football or scoring over a certain number of points in a basketball game. The logic from the NCAA is that the existence of props bets poses risks. First, they may endanger players’ safety. Secondly, they may compromise the integrity of college sports.
Deal benefits everyone
We won’t get bogged down on the ins and outs of the player prop bets ban as an ethical issue, but it’s enough to say that the NCAA believes it is enough of an issue to act. And one of the ways it intends to bring sportsbooks to heel is through the withholding of data. The NCAA recently signed a deal with Genius Sports, a data collection service that then sells on the data. It could be used for various purposes, ranging from video games like EA College Sports to using for DFS games on platforms like SportsMillions, but it is especially valuable for sportsbooks when setting odds.
As reported by the New York Times, sportsbooks can still use unlicensed data for odds-setting in college sports, but it is much more preferable to use licensed data for purposes of accuracy. As Genius Sports is the main partner of the NCAA, it is the best source of that data. Genius Sports also has licensing deals with the Premier League and NFL, according to the NYT.
Risky props bets may lessen integrity
The key language is not in the existence of props bets in and of themselves but risky props bets, i.e., anything that could possibly be manipulated by outside forces. Those bets will be removed by sportsbooks who wish to access the real-time analysis and essential data provided by Genius Sports. In short, Rather than trying to ban everything outright, the NCAA is creating a data-access-for-compliance agreement. So, if you want premium stats, you must play by NCAA rules.
There are other benefits to the deal, too. The NCAA will benefit financially from any sales of the data to sportsbooks, something it was not able to do previously. Moreover, you can argue that the sports betting experience will improve should there be more reliable data available to sportsbooks. Yet, above all, it feels like a good step in the preservation of the integrity of sports.
Ultimately, the NCAA’s partnership with Genius Sports represents a shrewd pivot. It bypasses legislation – something that can be painfully slow – in favor of immediate influence. By controlling access to data, the NCAA has effectively found a way to kill two birds with one stone. First, it allows the organization to benefit from the valuable data market (something that has seen explosive growth in recent years), and it protects the integrity of college sports. The headlines focus on betting restrictions, but it’s also about reframing the rules of engagement in the sports data economy.
