DraftKings: NBA Scandal Validates Safeguards Within Regulated Markets

A spokesperson said regulated sports betting helps expose suspicious betting activity and maintain integrity.

Ziv Chen - News Editor at Covers.com
Ziv Chen • News Editor
Oct 27, 2025 • 13:50 ET • 4 min read
Photo By - SIPA.

DraftKings reacted to the recent illegal betting scandal involving NBA figures by emphasizing the strength of regulated betting markets in detecting and preventing misconduct.

Key Takeaways

  • DraftKings argued that regulated sports betting helps expose suspicious betting activity and maintain integrity.

  • Data-sharing between operators and integrity monitoring firms such as IC360 and IBIA is critical in detecting irregularities.

  • The NBA scandal has emphasized the contrast between regulated and illegal gambling environments.

A DraftKings spokesperson told the Boston Globe the situation validates how regulated online sports betting systems work to identify suspicious activity and protect consumers. The company maintains cooperation between operators, leagues, and authorities as key to maintaining the integrity of sports.

DraftKings' monitoring systems, which rely on continuous data analysis, are designed to flag unusual patterns, such as an abrupt shift in betting size or outcomes inconsistent with gameplay. The operator shares these alerts with betting integrity firms, which notify leagues or regulators when potential
manipulation arises. Such collaboration allows suspicious markets to be halted before damage spreads.

DraftKings, the NBA's official sports betting partner, said regulated platforms lower the risks of corruption much more than unregulated ones, which lack as much oversight and transparency.

Lawmakers demand NBA accountability

Following the indictments of the individuals, congressional leaders have launched an inquiry.

On Oct. 24, House Energy and Commerce Committee chairman Brett Guthrie and ranking member Frank Pallone Jr. sent a letter to NBA commissioner Adam Silver seeking detailed information about the league's response.

The committee, which oversees interstate commerce, consumer protection, and sports integrity, requested a briefing by Oct. 31. Lawmakers want to know what kinds of illegal betting are occurring, what the NBA is doing to protect itself, and how it plans to keep nonpublic information from being used for unlawful purposes.

They also want to know if the NBA's Code of Conduct does enough to stop this kind of behavior and if there are any holes in the rules that are letting illegal schemes happen.

The committee has a long history of examining integrity issues in professional sports, including past investigations into doping and abuse scandals. This most recent case has brought back worries about how far illegal betting networks may go in professional basketball.

Las Vegas operators react to NBA scandal

Veteran bookmakers in Las Vegas, long considered the first line of defense against point-shaving and game-fixing, expressed alarm at the allegations. John Murray, vice president of race and sports at Westgate, told the Las Vegas Review-Journal that he was "shocked" by the reports, noting that legal operators would be the first to suffer financially from rigged games.

Murray said licensed sportsbooks monitor and report any suspicious betting behavior. If necessary, compliance teams take issues to the Nevada Gaming Control Board (NGCB). He suggested criminal betting syndicates likely targeted larger national operators with extensive player prop offerings or unregulated markets overseas.

The NGCB declined to confirm whether it had opened an investigation. Public information officer Jennifer Morton stated that no comment could be made at this time, underscoring the secrecy surrounding ongoing or potential probes.

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Ziv Chen
News Editor

Ziv has been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”

When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.

When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.

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