Why the NCAA’s New Betting Permission is a Major Risk for College Athletes and What They Should Be Doing Instead

Introduction: A Rule Change with Big Implications

On October 22, 2025, the NCAA approved a sweeping rule change: beginning November 1, collegiate athletes and athletic department staff across Divisions I, II and III will be allowed to place wagers on professional sports (NFL, NBA, MLB, etc.). (ESPN.com)

At first glance this may seem like a minor liberalization, but for athletes whose careers, future income, financial planning and reputations are on the line, this change opens a host of risks. This article explores:

• The dangers inherent in sports betting for athletes
• How the rule change could affect their finances, focus and future
• Better alternatives for what athletes should do with available income (or potential windfalls)
• What coaches, families and advisors must do right away to protect athletes

1. Why This Rule Change Is Problematic for Athlete Financial Planning

1.1 Gambling Is Not a Financial Strategy

While betting appears like a possible shortcut to extra income, it is extremely high risk:

• Sports betting involves negative expected value. Over time, most bettors lose money, not gain.
• Young athletes already face volatile earnings, uncertain careers and short windows of income; introducing betting compounds financial instability.
• Betting distracts from more reliable wealth‑building behaviors: saving, investing, building skills and controlling expenses.

1.2 Integrity & Career Risk

Even though the new rule permits bets on professional sports, the NCAA still prohibits athletes from betting on college sports or sharing inside information. (NCAA.org)

• There is a heightened risk of being caught in violation, which could lead to loss of eligibility, reputation damage or legal consequences.
• Recent investigations show betting violations can derail careers: the NCAA uncovered 13 athletes at six schools for alleged gambling misconduct. (New York Post)

1.3 Financial & Emotional Cascades

Sports betting can trigger serious downstream effects:

• Losses can erode emergency funds, jeopardize future income streams, increase debt and reduce net worth.
• Because athletes often lack financial buffers, a betting loss can force them to borrow, spend unsustainably or take undue risks.
• Betting can shift mental focus away from performance, academics and long‑term planning; for an athlete, focus matters.

1.4 Timing and Career Window Considerations

Athletes in college are in a unique income window with short, high‑visibility, high‑risk. When they gamble rather than invest or protect, the opportunity cost is steep:

• Instead of allocating windfalls into investments, tax reserves or business interests, funds may be diverted to speculation.
• Poor financial choices made now can hamper long‑term growth: missed compounding, tax burdens, lost infrastructure.

2. What Athletes Should Be Doing Instead of Betting

2.1 Build an Income Buffer & Tax Reserve

• Set aside a minimum of 20‑30% of income (endorsements, NIL deals, stipends) into a high‑yield savings or short‑term safe account.
• Develop a tax reserve for unreported earnings or misclassification can lead to audits and big bills.

2.2 Invest Early with Time on Your Side

• Use early earnings to establish low‑cost index funds, retirement accounts (when eligible) or real‑asset investments (real estate, business ventures).
• Time is your greatest ally. Even small amounts invested now can compound significantly.

2.3 Channel Earnings Into Skill & Brand Growth

• Rather than seeking quick wins from betting, invest in:

• Personal brand development (media, content, community)

• Networking and relationships that last beyond playing years

• Business education (entrepreneurial skills, financial literacy)

2.4 Avoid "Windfall Spending"

• No matter how large an income appears, treat it as deferred income, not immediate consumption.
• Create a budget: essential expenses, savings/investment, lifestyle. If you were to lose eligibility or face injury tomorrow, could you live on what remains?

2.5 Establish a Protection & Insurance Layer

• Consider insurance (injury, career-ending, disability).
• Legal/equity structure: set up entities/IP protections; separate personal and business finance.
• Avoid speculation. Betting is risk, not protection.

3. What Coaches, Families & Advisors Must Do Right Now

3.1 Educate Athletes About Risk

• Organize targeted education on gambling risks, addiction patterns, financial volatility. The rule change doesn’t mean freedom without consequence.
• Use real‑life research: e.g., a JAMA‑Internal Medicine study found 10.9% of student bettors exhibited two or more behaviors consistent with gambling disorder. (Mondaq)

3.2 Incorporate Gambling Risk into Financial Planning

• Financial advisory should include a risk inventory: betting exposure, impulse spending, peer pressure, short‑term thinking.
• Build automatic systems to allocate income first to investment or savings, not discretionary gambling.

3.3 Monitor Environment & Behavior

• Staff and family should watch for red flags: frequent sports wagering apps, secrecy about funds, stress about money, changes in mood or performance.
• Use institutional monitoring tools (many schools already use systems like ProhiBet) to track wagers, fantasy anomalies or unusual patterns. (Houston Chronicle)

3.4 Create Accountability Structures

• Institute regular check‑ins: financial review meetings, spending audits, mentorship over lifestyle decisions.
• Use mentors or ex‑athletes who have experienced financial landmines to educate younger athletes.

3.5 Advocacy & Policy Influence

• Advocate for stronger protections: schools should restrict access to betting apps on campus, limit sponsorships/time when athletes are vulnerable, ensure financial literacy is mandatory.
• Collaborate with compliance departments and ensure athletes understand not just rules, but consequences and long‑term cost.

4. The Bigger Picture: Betting Doesn’t Create Wealth, Planning Does

While the NCAA may now permit bets on professional sports, permission does not equal financial strategy. For athletes:

• Wealth is built by discipline, time, structure, not speculation.
• The window to establish strong habits, set aside capital, build brand and skill is narrow and precious.
• Betting introduces speculative risk that competes with investing, skill‑development and financial control.
• Your focus should not be “How can I make a quick bet win?” but “How can I build decades of optionality, revenue streams and security?”

Conclusion: Don’t Mistake Permission for Planning

The landscape around college athletics is evolving rapidly, but some fundamentals remain constant: income is finite, risk is real, planning matters. The NCAA’s new rule allowing bets on professional sports may shift the regulatory environment, but it doesn’t change the fact that athletes still need sound financial hygiene, long‑term perspective and a protective ecosystem.

If you’re an athlete, family member or advisor: use this policy shift as a wake‑up call rather than a loophole. Build the habits now that will serve you long after the final whistle.

Ready to set up the right financial guardrails, skills and team for the long game?

Let’s talk.