States Allowing Direct Payments to College Athletes

Hands exchanging money with a football stadium in the background

Last Updated on June 8, 2025

Virginia was the first state to pass a law allowing direct payments to athletes back in April 2024. One year later, 14 states now have laws or executive orders allowing some version of the same. However, thanks to the House settlement, many of those laws now go beyond Virginia’s law.

For example, Tennessee’s law prohibits any limits on athlete compensation unless they’re part of a federal law, valid court order or found in the future to be exempt from antitrust law. The House settlement, with its salary cap and clearinghouse review of NIL deals, wouldn’t be considered a court order. As a result, universities in Tennessee don’t have to abide by the settlement or NCAA rules that limit compensation, although there’s an attempt by the power conferences to have universities sign a contract agreeing to comply.

Below are the laws and executive orders in states allowing direct compensation.

ArizonaSB1615
ArkansasHB1917/Act 839
ColoradoHB 25-1041
ConnecticutHB 6402/Act 21-132
GeorgiaExecutive Order
KentuckySB 6
LouisianaExecutive Order
MissouriRSMo Section 173.280
MontanaSB 271
OhioHB 315
OklahomaSB 490
TennesseeSB 536
TexasHB 126
VirginiaHB 1505
West VirginiaHB 2576