NBA Scandal: Players Accused of Sports Betting Through the Mafia.

According to Vox: Gambling in sports has become so widespread in the U.S. that at the beginning of 2018, it was only legal in four states, and only in Nevada could you bet on individual games.

Everything changed in May of that same year when the Supreme Court struck down the federal law prohibiting most forms of sports gambling. Since then, the legal sports betting industry has expanded to 38 states and Washington, with revenues nearing $14 billion in 2024. A significant portion of this revenue comes from popular mobile apps like DraftKings and FanDuel.

Both laws existed due to concerns that large sums of money could lead to scandals that would call into question the integrity of sports.

So on Thursday, as a result of a joint investigation by federal, state, and local authorities, the FBI announced at a press conference in Brooklyn the charges against three current and former NBA players, including one famous Hall of Fame coach, for possible involvement in schemes of theft, fraud, and robbery related to using insider information for betting... this raises questions about the integrity of NBA games against the backdrop of a new season starting this week.

Place Your Bets

These charges have become yet another scandal in sports, but perhaps the most serious, as they may involve other players. And strangely, so much time has passed since the legalization of sports betting before events of this magnitude surfaced. This indicates that modern gambling has substantially changed, and the huge sums at stake only increase the risks.

If you're not one of the roughly 20% of adult Americans who placed bets on sports last year or had an online betting account, you might not realize how legalization and digitization have transformed gambling. Now players can easily place bets through apps, as well as bet on small events or micro-bets, which can mean thousands of dollars on trivialities like who will make the next shot in an NBA game.

Micro-betting increases impulsivity and raises the risk of gambling problems, which can threaten the integrity of the games themselves. While it's hard to envision a professional athlete colluding with criminal elements to alter game outcomes, actions like creating the impression of an injury or missing the next shot can still be easy to execute. Among the allegations this week was that Miami Heat guard Terry Rozier informed players in advance that he would leave the game early, allowing them to make hundreds of thousands of dollars on insider bets.

Lack of Integrity

Shady sports betting should not become the norm, so fans begin to doubt the integrity of the games. This is precisely why professional sports leagues previously staunchly opposed the legalization of betting, so much so that all four major leagues and the NCAA collectively filed a lawsuit against New Jersey in 2012 to stop attempts by the state to legalize gambling. This, in turn, led to a Supreme Court ruling allowing states to decide for themselves about legalization.

However, after the Supreme Court decision, the ability to make billions from legalized betting became crucial, and professional sports leagues not only stopped their opposition but also began actively supporting the betting industry. Each major league has its official betting partner; specific teams have their agreements, and some have even introduced betting at their stadiums. Betting lines have become a significant part of sports media, which might not have existed without the pervasive gambling advertisements that surround every broadcast.

Legalization of sports gambling has also brought with it other costs, including rising social and financial costs related to gambling problems. One article linked the decrease in household savings and worsening credit to the legalization of gambling, while calls to hotlines regarding gambling issues have surged.

The Supreme Court made its decision in 2018 for technical reasons, as it was illegal for federal legislation to impose rules on state legislatures. But for bettors and sports fans, this decision, coupled with the rise of mobile apps that simplify the gambling process, has radically changed American society. The charges announced on Thursday suggest that this is just the beginning of the consequences.

This version of the story first appeared in the Future Perfect newsletter. Subscribe here!