I remember when I was going to college at a DIvision III school, I somehow got roped into being the secretary of our residence hall council (we were the only hall council with a web page!). Our greatest challenge was figuring out how to spend the budget they provided us. One thing we did was hold a free giveaway around the NCAA tournament. We sat at a table in the doorway, and invited the sudents to pick one of the 64 team names out of the hat. The person who pulled the winning team won a gift certificate.
This was fine until we asked a member of the football team to draw a name, and he didn't because NCAA rules forbid gambling on any NCAA sport. So even though he wouldn't have to pay any money, and the prize was non-cash, he couldn't participate. Perhaps he was being overly prudent, perhaps not.
Anyway, if a likely non-scholarship football player at a Division III school knows that taking part in a free raffle for the NCAA tournament brushes up against the rules, I find it very hard to believe that the head coach of one of the most prominent football programs in the country wouldn't know that placing bets amounting in the thousands on the NCAA tournament wasn't kosher.