A U.S. Congressman is reportedly aiming for federal regulation of controversial sports betting markets.
Key Takeaways
- Hawaii Senator Brian Schatz wants to “heavily regulate” props.
- The Congressman says NBA and MLB scandals show a “need” for federal involvement.
- Schatz wants to end markets that can be manipulated by a “single bad actor.”
Sen. Brian Schatz (D-Hawaii) told journalist Pablo Torre that he will “heavily regulate prop bets” by introducing new legislation in 2026. Torre, who reported Schatz’s proposal on X, included illegal offshore sportsbooks in the regulation.
Schatz’s pursuit comes on the heels of betting scandals involving multiple NBA and Major League Baseball players, who manipulated game performance to profit from sports wagering.
“In just a few years, sports betting has grown into a billion-dollar industry, changing the way fans engage with sports, while providing new revenue streams for leagues,” Schatz said in a statement provided to the Pablo Torre Finds Out podcast.
“But when every in-game moment and outcome can be wagered on, it creates real risks. Integrity is essential to competitive sport, and recent allegations about gambling in the NBA and MLB have made it clear we need federal protections. We’re working on legislation to stop the kind of prop betting that gives a single bad actor the ability to manipulate a specific, singular outcome for a big payout. This is about protecting fans and restoring public trust in sports,” the statement added.
Breaking: @PabloTorre has gotten word from Senator Brian Schatz that federal legislation may be proposed in 2026 to regulate sports prop betting in the United States pic.twitter.com/RMRU3e5eeo
— Pablo Torre Finds Out (@pablofindsout) December 22, 2025
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The scandals
Sports betting is currently legal in 39 U.S. states, but there has never been any legislation passed regarding legal sportsbooks. Torre said Schatz is working with professional leagues, player associations, and sports betting operators to formulate his legislative proposal.
In October, NBA guard Terry Rozier was arrested on fraud and money laundering charges involving a game in 2023. The FBI and federal prosecutors allege that Rozier, then with the Charlotte Hornets, conspired with a friend to hit the under on his prop bets. The two men shared the sports betting winnings.
Also, former Toronto Raptors player Jontay Porter pleaded guilty in 2024 to fraud charges after he manipulated his performance in two games to help a group of bettors profit.
Just last month, Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were arrested and charged with a gambling scheme involving the location and speed of first pitches, which were betting markets previously offered at sportsbooks. Clase and Ortiz were allegedly found to have been providing information and helping fund two bettors in the Dominican Republic.
The issues
PASPA was overturned by the U.S. Supreme Court in 2018, allowing states to individually legalize sports betting. There have been a few bills introduced since then that would involve federal regulation of sports betting, but none have been passed.
How far Schatz’s legislation could go is unknown, but the manipulation of prop betting, as Torre pointed out, has been one of the biggest stories in sports in 2025 and could be fresh on the minds of lawmakers.
Pro leagues have taken matters into their own hands to some degree. The NBA was able to get sportsbooks to stop offering props on players who were on limited two-way and 10-day contracts after the Porter scandal, and NBA commissioner Adam Silver has publicly worked to restore the integrity image of his league.
MLB worked with operators to eliminate pitch-level markets right after Clase and Ortiz were charged. The NCAA, which has seen several game manipulation cases over the last couple of years, has called on state lawmakers and regulators to prohibit college player prop wagering since 2024.
