Federal appeals court rejects NCAA Final Four “illegal lottery” ruling

A federal appeals court threw out a class action lawsuit against the National Collegiate Athletic Association that accused the sports organization of running an illegal lottery for Division I Final Four competition.

Both men’s and women’s basketball are affected by the ruling. In George et al v. National Collegiate Athletic Association, U.S. Seventh Circuit Court of Appeals, No. 09-3667, the court decided that the NCAA is not committing an unlawful lottery by forcing fans to pay in advance for coveted tickets and not refunding them for service fees even if they were not chosen in the random-selection process.

However, the court did state:

We do note that the question of whether this ticket-distribution system constitutes a lottery under Indiana law is a close one, and our holding could have far-reaching effects on sports-ticket distribution systems utilized by the NCAA and others.

• Audio: Oral Argument
• George et al v. National Collegiate Athletic Association, U.S. Seventh Circuit Court of Appeals, No. 09-3667 (PDF)