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State-by-State Guide to NIL Laws: Is It Legal in Your State?
January 6, 2025

Name, Image, and Likeness (NIL) rights have changed the college sports game forever. For years, athletes couldn’t profit from their talents off the field. Now, the NIL era has opened the door to endorsements, partnerships, and personal branding—but the rules depend on where you play. Let’s break it all down so you know if NIL is legal in your state.

What is the Meaning of NIL in College Sports? 

NIL refers to the rights of athletes to profit from their name, image, and likeness. Before 2021, NCAA rules made it almost impossible for student-athletes to make money from endorsements, autographs, or social media. 

Then came a tidal wave of change. The NCAA finally allowed athletes to sign endorsement deals, make paid appearances, and even launch their own brands. NIL deals aren’t about getting paid to play—athletes aren’t employees—but it lets them make money in other ways.


How Does NIL Work? 

NIL deals can range from TikTok sponsorships to endorsement campaigns. It also includes selling personal branded merch—just look at Ashton Jeanty, the rising football star who’s dominating both the NIL game and the football field. Jeanty teamed up with NIL Store to create custom merch, turning his name and image into wearable gold for his fans. His success has made him one of the highest-paid NIL male athletes on the platform.

Support Ashton Jeanty, a rising NIL college football player by checking out his Locker Room on the NIL Store (Source: NIL Store)

 

There are rules surrounding NIL deals, though—and they vary depending on where you play. States with NIL laws might have specific guidelines, like disclosing contracts to schools or banning certain endorsements (like gambling or alcohol). 

In states without NIL laws, colleges create their own policies, which can lead to some big differences in how athletes cash in. Let’s take a closer look at where your state stands.

States with Active NIL Laws

Below, we’ve rounded up states that have passed laws about NIL. Keep in mind that these laws are always evolving—some states even updated their policies to stay competitive.

Alabama

  • Repealed its NIL law on February 3, 2022.
  • Initially allowed athletes to monetize their NIL but later decided NCAA guidelines provided more flexibility for schools and athletes​.

Arizona

  • Effective July 23, 2021.
  • Athletes are protected from scholarship loss for receiving NIL compensation.
  • Prohibits contracts that conflict with team agreements or institutional intellectual property rights​.

Arkansas

  • Effective January 1, 2022.
  • Contracts must be disclosed, and athletes cannot promote during team activities.
  • Restrictions on endorsing products like alcohol and gambling​.

California

  • Pioneered NIL laws with the Fair Pay to Play Act, effective September 1, 2021.
  • Prohibits agreements that conflict with existing institutional endorsements​.

Colorado

  • Effective July 1, 2021.
  • Athletes must disclose NIL agreements within 72 hours.
  • Schools cannot prevent athletes from profiting from their NIL​.

Connecticut

  • Effective September 1, 2021; amended July 1, 2022.
  • Schools can’t restrict athletes from NIL opportunities. 
  • Recent amendments let athletes use school logos if approved​.

Florida

  • Effective July 1, 2021.
  • NIL agreements cannot conflict with athletic program policies.
  • Financial literacy and life skills workshops are required for athletes​.

Georgia

  • Effective July 1, 2021.
  • Institutions can pool up to 75% of NIL earnings for redistribution after graduation.
  • Financial literacy workshops are required​.

Illinois

  • Effective July 1, 2021; amended May 20, 2022.
  • Allows schools to assist in securing NIL deals.
  • Prohibits contracts with gambling, alcohol, and tobacco companies​.

Kentucky

  • Initially enacted via executive order on July 1, 2021.
  • Institutions can restrict NIL activities they find harmful to their image​.

Louisiana

  • Effective July 1, 2021; amended June 10, 2022.
  • Allows colleges and boosters to facilitate NIL deals​.

Maryland

  • Effective July 1, 2023.
  • Prohibits in-person advertising during official team activities​.

Michigan

  • Effective December 31, 2022.
  • Athletes can sign deals and hire agents, but deals must not conflict with institutional contracts​.
  • Apparel conflicts with school branding are banned​.

Mississippi

  • Effective July 1, 2021; amended April 18, 2022.
  • NIL activities during team events are restricted​.
  • Athletes must notify schools about deals beforehand. 

Missouri

  • Effective August 28, 2021; amended in 2023.
  • High schoolers can sign NIL contracts after committing to a college team​​.
  • Prevents the NCAA from penalizing for protected NIL activities​.

Montana

  • Effective July 1, 2023
  • Athletes can’t enter agreements conflicting with team contracts. 
  • Disclosure to the institution is required​.

Nebraska

  • Effective July 1, 2023.
  • Institutions can create their own NIL policies.
  • Contracts cannot require promotion during team activities​.

Nevada

  • Effective January 1, 2022.
  • Requires education in contracts and financial literacy for athletes​.
  • Contracts must be disclosed to schools​.

New Jersey

  • Effective during the 2024–25 school year. 
  • Certain endorsements (like alcohol, gambling, or pharmaceuticals) are prohibited​.
  • Prohibits deals that conflict with official team contracts.

New Mexico

  • Effective July 1, 2021.
  • Strong athlete protections ensure no penalties for NIL earnings. 
  • Endorsements can’t happen during games or use team gear​.

New York

  • Effective November 21, 2022; Amended in July 2023.
  • Recent updates in 2023 solidified protections for student-athletes​.
  • Prevents the NCAA from penalizing athletes for NIL deals. 

North Carolina

  • Executive order effective July 2, 2021.
  • Schools are responsible for creating NIL policies​ under a framework provided by the governor’s executive order​.

Ohio

  • Effective July 1, 2021.
  • Prohibits deals for substances like tobacco and gambling.
  • Athletes must comply with sports agent regulations​.
  • Contracts must be disclosed​.

Oklahoma

  • Effective July 1, 2023.
  • Schools can help athletes secure deals.
  • Contracts must be disclosed within 72 hours​.

Oregon

  • Effective July 1, 2021.
  • Royalties are required for merchandise using athletes’ NIL. 
  • Contracts must align with team obligations​.

Pennsylvania

  • Effective June 30, 2021.
  • Prohibits institutions from arranging third-party compensation​.
  • NIL laws are tied into the state budget, making compliance straightforward for athletes​.

South Carolina

  • Temporarily suspended its NIL law, but athletes can still pursue opportunities under NCAA guidelines​.

Tennessee

  • Effective January 1, 2022; amended April 20, 2022.
  • Coaches can attend NIL events, and schools can support NIL collectives​.

Texas

  • Effective July 1, 2021.
  • Schools cannot penalize athletes for state-compliant NIL activities​.
  • Financial literacy workshops are required. 
  • Certain endorsements (like alcohol, gambling, or tobacco products) are prohibited​.

Virginia

  • Effective July 1, 2022.
  • NIL rules are integrated into state legislation. 
  • Schools offer guidance but have limited control over deals​.

Stay Updated

The NIL world is evolving faster than a two-minute drill, and states are calling their own plays. If you’re an athlete, it’s worth keeping tabs on how these laws shake out in your state. 

Ready to cash in on your NIL? Start creating your own merch at the NIL Store. Whether you’re a rising star or already dominating the field, we’ll help you turn your name, image, and likeness into custom gear your fans will love. Don’t wait—start building your brand today!