Can NBA players be involved with sports betting operators? The new CBA rules explained

On Wednesday, the NBA announced a new collective bargaining agreement (CBA) with the player’s union. The updated deal includes several changes, such as new regulations on the involvement of league players with sports betting operators.

One significant change is that active players can now invest in sportsbooks, provided their total investment does not exceed 1% of the company. Moreover, their organizational involvement must be passive, without management, governance, voting, executive, or operational rights.

The league has more relaxed rules for entities involved in facilitating wagers but not accepting NBA wagers. In such cases, players can own up to 49% of the operation if it complies with all applicable laws and regulations related to sports wagering, fantasy sports contests, or similar transactions.

It will be intriguing to see how player endorsements compare in value between the NBA, MLB, and NHL. The popularity of basketball as a general category makes it the most overall betting market in the US, accounting for approximately 35%. Although this figure includes the highly sought-after NCAA Tournament, state revenue records indicate that the NBA generates significant revenue throughout the year. Conversely, football makes up roughly 32% of the sports betting handle in the United States.

Current NBA players are permitted to promote sportsbooks while still playing, but there are specific conditions they must adhere to. It is crucial to note that they are prohibited from endorsing any sportsbook that involves NBA wagering.

NBA players still hold significant influence and maintain a high profile. According to the winter edition of the Q Scores Performer Q Study, which evaluates the recognizability and likability of individuals and brands, NBA players such as Giannis Antetokounmpo, Steph Curry, Luka Doncic, and Ja Morant make up 40% of the top 10.