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UNM athletics: School's deal with casino is big, legal

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At first glance, a record $2.5 million sponsorship agreement between the University of New Mexico's Athletics Department and a tribal casino hotel might seem at odds with NCAA rules against gambling.

Athletics Director Paul Krebs defended the deal Wednesday, saying it will help the department fund coaches' salaries, both for hiring and retention, and support programs for student athletes.

Krebs also said that because the Route 66 Casino Hotel, operated by Laguna Pueblo, cannot accept wagering on sports events, the agreement is similar to those with any other company.

"The gaming industry is a significant part of our state's economy," Krebs said. "It contributes to things like lottery scholarships. What people might be losing sight of is that we already have existing deals with other casinos."

The NCAA doesn't prohibit such agreements, provided they don't violate the organization's rules against sports wagering.

"Individual sponsorship arrangements and revenue sources are left up to the institutions as long as those arrangements do not involve Bylaw 10.3," NCAA spokeswoman Gail Dent wrote in an e-mail.

That rule bars student athletes, athletics department staff members, administrators involved in athletics oversight and conference staffers from knowingly participating in sports wagering.

In New Mexico as elsewhere, tribal casinos are barred under the federal Indian Gaming Regulatory Act from sports wagering. Games of chance, such as blackjack and slot machines, are permitted.

UNM has maintained advertising agreements with several other Albuquerque-area tribal casinos in recent years but it's hardly the first school to enter into such deals.

Laguna Pueblo also advertises its casino at New Mexico State, and the tribe sponsors the Rio Grande Rivalry - a competition between the Lobos and Aggies in all sports that started with the current academic year.

Arizona holds advertising agreements with the Pascua Yaqui, allowing the tribe's casino to advertise at the school's stadiums and arenas.

At Nevada, football coach Chris Ault and men's basketball coach Mark Fox in recent years have held their weekly luncheons with boosters at nontribal casinos that also advertise at Wolf Pack sports venues.

New Mexico's agreement with Laguna Pueblo, west of Albuquerque, is the largest sponsorship deal in the history of UNM sports. It runs for five years and includes an option for a three-year extension.

College sports administrators everywhere are searching for additional revenue streams. Two years ago at Oklahoma State, billionaire booster Boone Pickens gave a record $165 million donation to the Athletics Department.

Last year, Pickens suggested a less conventional funding plan that involves selling $10 million life insurance plans to boosters, who designate the Athletics Department as beneficiary.

Krebs noted New Mexico's contract is not with the casino but with Laguna Development Corporation, a tribal subsidiary that operates the hotel and other businesses to help drive the pueblo's economy.

He said the agreement benefits Laguna Pueblo through publicity with UNM sports teams. There's also a youth ticketing agreement that will bring tribal members to New Mexico games.

"It's a chance to get young people from the pueblo to a college campus," Krebs said. "It will expose them to higher education and the college experience. There are bigger opportunities here."

The agreement establishes Route 66 Casino Hotel as "the exclusive gaming sponsor" for UNM's Athletics Department as of July 1.

The casino can post signs at The Pit, University Stadium and other campus sports venues, with advertising and promotional opportunities at football, men's and women's basketball, soccer, baseball and volleyball events.

"This is an important part of our effort to make Route 66 Casino Hotel the best-known gaming brand in the state of New Mexico," Laguna Development Corporation president Jerry Smith said.