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NCAA Investigated for Illegal Gambling
MISSION CITY, KANSAS --
An NCAA ticket dispersal plan involving a lottery may violate laws in some states against gambling. A lawsuit alleging exactly that is headed for an Indiana court after a federal appeals court ruled the case had enough merit to garner a hearing.
Rewarding random participants with something of greater value than the price charged to enter a drawing, as the NCAA does for March Madness tickets, constitutes a violation of Indiana law. The state restricts lottery operations to itself, and all others are barred from operating a lottery inside Indiana borders.
The college athletic association that oversees such events as the men's basketball championship tournament charges consumers a non-refundable fee, such as $6 or $10, to enter a lottery. The winners get the right to purchase tickets to the Final Four, among other events.
The NCAA, which has a stern policy against gambling and has supported lawsuits to prevent 5the expansion of sports betting, says the fees are necessary to cover the costs of operating the ticket lottery.
An Indiana judge had dismissed the lawsuit, brought by residents of three states, but the appeals court said the case must be heard. An NCAA spokesman expressed disappointment in the ruling, and said the organization would consider its options.
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