Lawmakers are calling for tighter regulation of sports betting, following the arrests of several high-profile NBA figures in recent days.
Key Takeaways
- Some U.S. lawmakers have criticized what they call a lack of regulation in sports betting, following revelations of NBA game manipulation.
- Prop bets are now being scrutinized, with several lawmakers alleging that they are too easily manipulated.
- The sports betting industry argues that criminal syndicates are the root cause of the problem.
Over the last few days, we’ve witnessed a scandal of astounding magnitude unfold. Last week, it was revealed that Miami Heat guard Terry Rozier had been indicted on charges of conspiracy to commit wire fraud and money laundering.
The news comes following an investigation into two separate gambling cases. Conducted by an FBI-led joint task force, that investigation has now led to the arrests of more than 30 people. Charges center around game manipulation and involvement in rigged poker games.
Seven NBA games have come under the spotlight, with investigators alleging that the games were manipulated by a group of players and coaches, all of whom shared inside information for betting purposes.
Current coach Chauncey Billups and former player Damon Jones were arrested for their involvement in a rigged poker game. NBA Hall of Famer Billups is said to have helped operate the Mafia-backed game. Members of prominent New York mafia families were amongst those arrested in relation to the investigation.
Speaking about the scandal that has gripped America in recent weeks, FBI Director Kash Patel called it “the insider trading saga for the NBA.”
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Lawmakers push for stricter regulation across the country
Sports betting is now legal in 38 states, as well as D.C. Legal sports betting only became a reality in the U.S. in 2018, though, so it remains relatively new throughout much of the country.
As sports betting has grown, an increasing number of lawmakers have begun to push for stricter regulation of the industry. But bills haven’t been well supported in Congress so far.
The SAFE Bet Act is just one piece of legislation that would require states to introduce affordability checks and specific marketing and AI standards. It’s yet to advance in either chamber.
Lawmakers have also called for tighter restrictions on illegal offshore gambling, which many see as the root cause of the type of scandals we’re currently seeing unfold.
Sen. Katie Boyd Britt wrote to Attorney General Pam Bondi just weeks ago to call for such restrictions. In a statement released on Thursday, Britt’s (R-Alabama) office maintained that the senator was open to discussing “potential solutions to crack down” on the manipulation of sports betting.
Rep. Paul D. Tonko, who reintroduced the SAFE Bet act along with Senator Richard Blumenthal in March, described the unfolding NBA gambling scandal as “an inevitable consequence of the unchecked explosion of the sports betting industry.”
Calls for restrictions on prop bets
As part of recent calls for tougher regulation, Congress has begun looking into the advent of propositional betting, aka prop bets.
Prop bets revolve around wagering on particular player statistics during games, and many feel they should be subject to stricter regulations than other forms of sports betting.
In February, Rep. Michael Baumgartner introduced a bill designed to prohibit prop bets on the performance of college athletes. When asked about the recent arrests, Baumgartner said he was “disappointed but not surprised.”
Baumgartner explained that while he wasn’t pushing for an outright ban of prop bets, “the world of prop bets has opened up a lot of potential for illegal activity and issues that can threaten games.”
Early last week, NBA Commissioner Adam Silver spoke out in support of tougher regulation of the sports betting industry. Last year, Silver requested restrictions on prop bets for players involved in the NBA and its developmental league, to reduce the risk of gambling-related game manipulation.
“The temptation for athletes, seasoned coaches, and professional officials to adjust performances is real. Sadly, scandals are becoming more and more frequent,” Sen. Dick Durbin said in a statement released on Thursday.
“Congress, states, and sports leagues must all work to maintain the integrity of sports and prevent future sports betting scandals,” Durbin added.
Sportsbooks emphasize importance of fully regulated market
The sports betting industry argues that issues typically center around offshore betting and criminal syndicates, and that tougher regulations on things like prop bets would not solve the problem.
“We fundamentally believe that regulated online sports betting is the best way forward, to monitor for and detect suspicious behavior,” a DraftKings spokesman said.
The company’s sentiment was echoed by the American Gaming Association. The industry association stated that while recent revelations are “a stark reminder of the pervasive and predatory illegal market … it is important to recognize that the regulated legal market delivers transparency, oversight, and collaboration with authorities that assists in bringing these bad actors to light.”
