Could Sportsbooks Stop Taking Bets on Drafts After NBA Controversy?

As NBA teams look ahead to free agency and integrating their rookies this summer, last week’s NBA Draft has generated a new controversy regarding a tweet from insider Shams Charania.

Bettings odds for the Charlotte Hornets’ No. 2 over pick shifted dramatically after a report by Charania, who counts FanDuel among his several employers, according to the Wall Street Journal. FanDuel had to address the story, saying it isn’t privy to news Shams breaks on his platforms.

Although the overwhelming sentiment is that Charania had no ill intent with his scoop — which turned out to be wrong — some industry figures began speculating that more happenings like this could stop sportsbooks from offering wagers on drafts

Betting on drafts isn’t allowed in New York, Connecticut, Pennsylvania, Virginia, and Washington, D.C. —  but no U.S. sportsbooks have an overarching policy against it on principle.

“I’d be a little surprised if sportsbooks stop taking draft bets,” Chris Grove, co-founding partner of sports betting-focused Acies Investments, told Front Office Sports. Grove noted that the betting handle on drafts is not a huge piece of the overall pie. 

As more athletes navigate this new age of sports betting — often crossing the line — draft bets open the door for executives and team employees to potentially land in hot water, too.

“Any event where the outcome is known in advance is always going to be something that books and regulators approach cautiously,” Grove added.