• Loading stock data...
Saturday, February 22, 2025

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

  • Six years removed from PASPA, things are coming to a head, as seen in three major developments last week.
  • Regulation and detection are increasing, but ‘athletes can get sucked into betting’ in many ways.
Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.
John Hefti-USA TODAY Sports
Malika Andrews
Exclusive

ESPN NBA Stars Malika Andrews and Brian Windhorst Are Looming Free Agents

ESPN has major decisions to make this offseason with NBC and Amazon looming.
Read Now
February 21, 2025 |

Fifteen years ago, lawyers representing major U.S. pro sports and the NCAA were engaged in a legal fight over Delaware’s bid to expand sports betting in the state. 

They laid out this warning: “Sports lotteries involving single-game betting threaten the integrity of professional and amateur sports and are fundamentally at odds with the principle … that the outcomes of professional and collegiate athletic contests must be perceived by the public as being determined solely on the basis of honest athletic competition.” 

The leagues and NCAA prevailed in the case as Delaware was kept from allowing single-game betting. But the decision became moot, in May 2018, when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). 

Six years and billions of dollars in revenue later, a major moment of reckoning has arrived, and there are signs that the floodgates could open. It’s not just that the legal gambling industry is a behemoth and its marriage to pro leagues is only getting stronger. But the integrity concerns from 15 years ago have been thrust into the spotlight—made more prominent by a confluence of regulation technology and mobile betting, demand for the illegal market, and a slew of nuanced rules for players. This week’s scandals are only the beginning.

“Despite all the efforts, it’s bound to happen,” says longtime SuperBook at Westgate executive Jay Kornegay. “Legalized sports betting is in its infant stages. There’s a lot of naive people who believe they can circumvent policies. Operators have a vested interest in keeping these games true and fair. Integrity is our product. We don’t want to accept wagers on something that’s predetermined.”


Since PASPA’s repeal, the known violations have largely been limited to violation of league rules—like the several NFL players suspended for placing non-NFL bets on mobile betting apps within team facilities. 

But this past week, three major betting scandals came to a head: San Diego Padres infielder Tucupita Marcano was banned for life by MLB for betting on baseball, and four others players were suspended; Ippei Mizuhara, the former interpreter and confidante of Shohei Ohtani who illegally wagered millions pilfered from the Los Angeles Dodgers star (sports betting is illegal in California), pleaded guilty; and an illegal bookie tied to banned former Toronto Raptors player Jontay Porter (above) was arrested by federal authorities. 

“Banning a player for life sends a strong message,” famed sports agent Leigh Steinberg says. “[Marcano] may not be Shohei Ohtani. He’s not the best player in baseball, but still banning someone for life presents a stop sign. There’s a deterrent effect.”

Mizuhara, who stole nearly $17 million from Ohtani and compiled more than $40 million in gambling losses, faces up to 33 years in federal prison after his guilty plea Tuesday. Later Tuesday, the MLB said in a statement that the federal investigation of Mizuhara revealed “Shohei Ohtani a victim of fraud,” which Ohtani insisted when the news broke earlier this year. 

“I think we dodged a bullet with [Mizuhara],” says Ken Adams, a senior analyst at CDC Gaming Reports. “If that had been Ohtani making the bets, and not his interpreter, it would have blown up to become a national scandal.”

In April, Porter was banned for life by the NBA after a league investigation revealed he passed along injury information to gamblers and exited games early to pay off gambling debts. The bookie who allegedly placed prop bets fueled by Porter’s insider information was arrested Monday by federal authorities at John F. Kennedy International Airport as he attempted to board a flight to Australia. 

“The danger has exponentially increased by the presence of new prop bets,” says Steinberg. “There are so many new ways athletes can get sucked into betting.”

According to Steinberg, it’s also possible that inside information is not confined to each league and its respective athletes: “So, you can’t bet on your own sport, but it’s not like football players don’t know basketball players. They can share inside information because athletes are part of a large fraternity.”


Thirty-eight states and D.C. offer some form of legalized sports betting. Revenues generated from state-sanctioned sports betting—which didn’t exist outside of Nevada until PASPA’s repeal—have climbed from $135 million in 2017 to $10.9 billion last year, according to the American Gaming Association. 

Much of the betting industry’s growth—and misconduct—has been fueled by mobile betting, which is available in 30 states plus D.C.  

“The Supreme Court didn’t anticipate [the explosion of mobile betting],” says Adams. “Without mobile betting, a lot of these violations would be non-issues.”

Mobile betting operators are mandated to ensure a bet placed by a customer who claims to be in a state with legalized sports betting was made in that state—and by the person who owns the account.

“With more regulated betting, more of these cases are coming to the surface through detection and investigations [by sportsbooks],” says Dan Wallach, sports and betting law attorney. “The mistake that so many of the professional athletes are making raises concerns that are not getting the message.”

Companies like GeoComply and Radar seek to ensure users aren’t spoofing their location, something that some involved athletes at the University of Iowa and Iowa State were accused of doing last year. 

“We can be super accurate, even indoors,” says Nick Patrick, CEO and cofounder of Radar. “You want to make sure to get the location data as accurate as possible. You also want to be able to trust it. You want to make sure it’s not spoofed or tampered with.”


The slow drip of gambling violations shows no signs of halting. 

“Are there going to be scandals down the road? Most likely,” says Kornegay.

For many fans, and bettors, the most important concern for the future of sports remains. The concern over integrity is no different than it was in 1919 after the Black Sox threw the World Series, or 15 years ago when lawyers raised it in the fight over Delaware sports betting.

“Bad behavior by athletes doesn’t kill professional sports. There’s been plenty of that,” says Steinberg. “The only thing that could [hamper the popularity of sports] is the perception by fans that they were watching [professional] wrestling. That it is somehow scripted or predetermined or there were actions or facts going on the public wasn’t aware of, and we have seen that happen.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Dec 31, 2024; Durham, North Carolina, USA; Virginia Tech Hokies forward Tobi Lawal (1) and Duke Blue Devils center Khaman Maluach (9) battle for the opening tip during the first half at Cameron Indoor Stadium.

House v. NCAA Settlement Creates Potential Crisis for International Athletes

Revenue-sharing payments could violate international student visa laws.
Feb 20, 2025; Boston, MA, USA; [Imagn Images direct customers only] Team USA forward Brock Nelson (29) reacts to a hit during the second period against Team Canada during the 4 Nations Face-Off ice hockey championship game at TD Garden.

4 Nations Final Is Most Watched NHL Game in U.S.

ESPN now holds the record for the NHL’s biggest U.S. broadcast ever.
Jan 17, 2025; San Antonio, Texas, USA; San Antonio Spurs center Victor Wembanyama (1) dribbles past Memphis Grizzlies forward Santi Aldama (7) in the second half at Frost Bank Center.

Fanatics Pays Out and Refunds Wembanyama Bets After Injury Ends Season

Fanatics applied its Fair Play rule to bets related to Wembanyama winning awards.

Manfred, Pitaro Navigate Pressure After MLB’s ESPN Deal Ends Early

Both Manfred and Pitaro now face significant tasks without each other.

Featured Today

Nov 2, 2024; Pittsburgh, Pennsylvania, USA; Pittsburgh Penguins goaltender Alex Nedeljkovic (39) stretches during a time-out against the Pittsburgh Penguins in the second period at PPG Paints Arena

Behind the Mask: The Artists Creating Hockey’s Iconic Goalie Style

The art and business of outfitting pro netminders.
Feb 15, 2025; Montreal, Quebec, CAN; [Imagn Images direct customers only] Team United States forward Matthew Tkachuk (19) and Team Canada forward brandon Hagel (38) fight in the first period during a 4 Nations Face-Off ice hockey game at the Bell Centre.
February 16, 2025

Inside the Push for the NHL’s Next Era of International Competition

Players have been clamoring, and the league is all in.
Aug 11, 2024; Paris, France; Medals are carried out on Louis Vuitton trays after the women's volleyball gold medal match during the Paris 2024 Olympic Summer Games at South Paris Arena
February 16, 2025

LVMH’s New Push: World’s Most Powerful Luxury Group Is Coming for Sports

LVMH is making long-term deals—and they’re not done.
Feb 18, 2024; Indianapolis, Indiana, USA; Eastern Conference guard Damian Lillard (0) of the Milwaukee Bucks reacts after a play during the second half of the 73rd NBA All Star game at Gainbridge Fieldhouse.
February 15, 2025

The NBA’s Latest Attempt To Solve the All-Star Game Conundrum

A new mini-tournament on a lame-duck network may not solve the problem.
Jon Batiste

Sportsbooks Split on Hotly Disputed Super Bowl National Anthem Prop Bet

FanDuel and DraftKings split on the national anthem duration.
Josh Allen
February 6, 2025

Polymarket Whale Made Huge Late Bets On Josh Allen Winning NFL MVP

Allen’s odds skyrocketed from the 50s to over 90% on Thursday afternoon.
Andy Reid
February 9, 2025

Sportsbooks Call for Tighter Regulations on Prediction Markets

Sports betting and sports event contracts are treated differently—for now.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Feb 5, 2025; New Orleans, LA, USA; Kansas City Chiefs and Philadelphia Eagles helmets at the Caesars Superdome prior to Super Bowl LIX.
February 6, 2025

Amid ‘Record’ Super Bowl Betting, Market’s Two Largest Forces Still Reign

FanDuel and DraftKings still dominate the ever-expanding space.
Aug 22, 2023; Houston, Texas, USA; Boston Red Sox manager Alex Cora (13) talks with home plate umpire Pat Hoberg as Houston Astros starting pitcher Justin Verlander (35) adjusts his PitchCom device during the second inning at Minute Maid Park.
February 3, 2025

MLB Fires Umpire Pat Hoberg: Third Gambling Scandal in Under a Year

The league terminates the umpire for failing to uphold the game’s integrity.
Jan 26, 2025; Philadelphia, PA, USA; Philadelphia Eagles quarterback Jalen Hurts (1) walks off the field after winning the NFC Championship game against the Washington Commanders at Lincoln Financial Field.
February 3, 2025

Robinhood Suspends Rollout of Super Bowl Betting After CFTC Request

Robinhood has suspended trading of event contracts on the Super Bowl.
Terry Rozier
January 30, 2025

Feds Investigating Terry Rozier for NBA Point Shaving

Rozier is eyed in the same investigation that snagged Jontay Porter.