Colleges Face Steep Fines Under Proposed ‘Fair Play Enforcement Act’

Prompted by a recent scandal involving LSU, bipartisan legislation introduced in Congress would penalize colleges that roster former professional athletes. Named the Fair Play Enforcement Act, the bill would also fine athletic departments that knowingly admit student-athletes who have gambled on college sports. LSU head coach Lane Kiffin in action against the Kentucky Wildcats at Kroger Field on Oct. 10, 2026, in Lexington, Kentucky. A federal bill would pose financial fines against schools like LSU that seek to allow former professional athletes to return to college sports. (Image: Getty) U.S. Representatives Adrian Smith (R-Neb.) and Brendan Boyle (D-Pa.) introduced the Fair Play Enforcement Act earlier this month. The lawmakers say the bill would hold colleges and universities accountable for fielding athletes who violate established standards of fair competition. College athletics have a long history of bringing people together, fostering competition, and teaching us what it means to represent something bigger than ourselves. Unfortunately, recent developments continue to put the values and traditions that make college sports unique at risk,” said Smith. “College sports depend on honesty and fair play. Schools should not be fielding players who have bet on games or who have been on professional sports teams. Our commonsense legislation creates a financial consequence for schools that cross that line and helps protect the integrity of college athletics,” said Boyle. Bill Proposes Excise Penalty If passed into law, the Fair Play Enforcement Act would require college athletic departments to thoroughly vet incoming freshmen and transfer students before allowing them to compete. The bill imposes a federal excise tax on any school that “knew or reasonably should have known” it fielded an athlete who previously bet on college sports or played professionally. However, the restriction on professional play applies only to the specific sport in question. For example, a former NFL player could return to play college baseball, but would be barred from college football. Smith and Boyle suggest the federal government levy substantial penalties for violators, with the Fair Play Enforcement Act proposing a first-offense fine of 5% of the school’s gross athletics receipts. The fine climbs to 10% on a second violation and to 20% thereafter. For a large sports school like Penn State, a first offense could cost almost $13 million. A second offense would be $25.5 million, and a third offense would be $51 million. Speaking with News Channel Nebraska, Smith said he hasn’t yet spoken with officials at the University of Nebraska. “I am proposing a tax be levied on a university that would be complicit with these athletes. We just introduced the bill. I am eager to hear from various universities,” Smith said. Prediction Markets Component Smith and Boyle’s bill doesn’t mention whether a college athlete who trades a college sports event contract on a prediction market would be defined as an excluded person under the Fair Play Enforcement Act. Currently, the legislation defines a banned gambler as someone “who has placed any wager (without regard to the manner in which placed) with respect to any intercollegiate athletic event or competition.” Smith, however, is seeking more federal regulation of prediction markets. He’s a chief sponsor of the PREDICT Act (Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act), which targets insider trading on prediction markets by government officials. The post Colleges Face Steep Fines Under Proposed ‘Fair Play Enforcement Act’ appeared first on Casino.org.