NBA Reassessing Sports Betting Approach After Federal Gambling Scandal

^{Adam Silver and the NBA collectively will reassess how sports betting is regulated following a slew of arrests from a federal gambling probe. (Photo:  TNS via ZUMA Wire)}

The NBA has sent a memo to all 30 of the league’s teams discussing concerns about the “dire risks” that gambling could pose to players and teams, according to multiple media reports released on Monday.

The memo comes after 34 people were arrested in connection to a federal gambling probe involving both sports betting and underground poker games. Among those arrested in the investigation were Miami Heat guard Terry Rozier and Portland Trail Blazers head coach Chauncey Billups.

NBA Shares Concerns Over Prop Bet Manipulation

In the memo, the NBA’s legal department called for stricter controls and updated policies to control the potential harms of gambling. Such changes could come from the league, federal regulators, or sportsbooks themselves.

“Given the spread of legal betting to the majority of US states, the recurrence of integrity issues across sports, and the emergence of novel betting formats and markets, this is an opportune time to carefully reassess how sports betting should be regulated and how sports leagues can best protect themselves, their players, and their fans,” the memo read.

The NBA’s biggest area of concern appears to be proposition bets, or “prop bets,” in which players bet on individual player performance. Rozier is accused of sharing insider information with a friend to help gamblers win bets based on his statistics during a March 23, 2023 game. At the time, Rozier was playing with the Charlotte Hornets, and told his friend that he would be exiting early from that day’s game against the New Orleans Pelicans. Rozier’s friend, Deniro Laster, allegedly sold that information to other gamblers for around $100,000.

Sportsbooks across several states later flagged unusual activity on Rozier’s “under” props, leading to cancelled bets and closed markets. Rozier would ultimately leave the game after nine minutes due to an apparent foot injury. 

NBA Calls for Stronger Safeguards

While the emergence of regulated sports betting markets makes it easier to detect suspicious betting activity, the NBA memo said that “more can be done” to protect the integrity of the sport.

“While the unusual betting on Terry Rozier’s ‘unders’ in the March 2023 game was detected in real time because the bets were placed legally, we believe there is more that can be done from a legal/regulatory perspective to protect the integrity of the NBA and our affiliated leagues,” the memo read. “In particular, proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”

The NBA says it will review its rules for injury reporting – a practice largely designed to maintain fairness in betting markets. Right now, teams can wait until as close as 30 minutes before tipoff to formally declare that a player is inactive for that game. While coaches are required to speak to the media less than two hours before each game begins, they often withhold specifics about the status of players who have been given the questionable designation. 

Prior to the recent arrests from the federal gambling probe, NBA Commissioner Adam Silver had already called for increased gambling regulation – ideally at the federal level – ahead of the NBA season earlier this month. Last year, the league issued a lifetime ban to former Toronto Raptors player Jontay Porter, who admitted to sharing injury information with bettors so that they could profit from his under bets.