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Shocking indictment that led to the arrest of more than 30 people Miami Heat Guard Terry Rozier and others nba Allegations of illegal sports betting have drawn new scrutiny on the booming business of professional sports gambling across the U.S., according to data
Since widespread legalization, the multibillion-dollar industry has made it easy to bet on everything from game results to single plays with a few taps of a cellphone. It is almost impossible to go to a basketball, football, baseball or other pro game today – or watch a match on TV – without seeing sports betting advertisements.
Fans can place bets from their stadium seats while the “bet” ticker scrolls by on the TV game broadcast. Star athletes are often at the center of advertisements promoting all this.
In Thursday’s indictment, federal investigators accused Rozier and other defendants of breaking the law by exploiting private information about players to win bets on NBA games. Rozier’s attorney, Jim Trusty, said in a statement that his client is “not a gambler” and “is eager to win this fight.”
A separate indictment accuses Portland Trail Blazers coach Chauncey Billups and others of participating in a conspiracy to fix high-stakes card games. Billups’ attorney declined to comment Thursday.
Regulating sports betting has proven to be a challenge – and experts warn about its consequences for gamblers who typically lose money. Questions have been raised about the role of professional leagues in promoting gambling.
Here’s what we know.
The explosion of legalized sports betting
Sports betting is probably as old as sports itself. But in the US, legal gambling really started in 2018.
only then Supreme Court Repealed the Professional Amateur Sports Protection Act, which banned sports betting in most states. Once only allowed in Nevada, sports betting is now allowed online or at retail locations in 38 states and Washington, D.C. Missouri will become the 39th state on December 1.
Experts say the biggest jump has come online through smartphone apps and platforms like DraftKings and FanDuel. According to the American Gaming Association, legal sports betting brought in $10 billion in revenue in the third quarter of this year, up nearly 19% from the same period a year earlier.
The industry argues that legal betting generates money for states and prevents illegal betting. Major operators point to the technology they use to monitor suspicious activity. FanDuel said Thursday’s news highlights the “clear distinction between legal and illegal betting markets.”
Who benefits?
There is a lot of money on the table for both those placing winning bets and the platforms that make it possible. The NBA and other pro sports leagues have also created revenue streams by partnering with sportsbooks and earning advertising dollars.
Live game statistics provided by leagues are key to the relationship between the sports world and the gambling industry. When you’re able to bet on what the next pitch is going to be in a baseball game, it’s because Major League Baseball is selling data on the platform “at a significantly higher price,” according to Isaac Rose-Berman, whose research focuses on sports betting as a fellow at the American Institute for Boys & Men.
The NBA has partnered with Sportradar for its data rights. Sportradar, in turn, provides FanDuel Sportsbook official NBA statistics. When the deal was announced in 2022, Sportradar described it as a way to “monetize our long-term partnership with the NBA.”
How is sports betting regulated?
Each state has its own rules and tax rates for sports betting. A handful of restrictions on where you can place bets – allowing users to use mobile apps, but only when they’re physically inside the casino or within a certain radius of the stadium, for example. Others limit which betting platforms you can use or what you can bet on.
“States have kind of opened a can of worms, and now some of them are starting to realize how crazy the world of sports betting is,” said Wayne Taylor, a professor of marketing at Southern Methodist University.
An even more complicating factor occurs when players and other team or league personnel are involved. nflThe NBA, MLB and NHL all prevent employees and players from betting on their own leagues’ games, although some gambling is permitted in individual jurisdictions.
Legal betting has some security benefits in that unusual betting patterns – such as large bets placed on random player performance – can be flagged immediately. In some cases, sportsbooks have reduced the odds on certain events to protect against manipulation.
Still, experts like Taylor note that companies’ own financial interests may bring some of this into question. And in sports markets, he says the large number of players and the range of micro-betting possibilities make potential manipulation “easy to hide.”
What is prop betting?
Prop is a type of wager that allows gamblers to bet on whether a player will exceed a certain statistical number, such as whether a basketball player will finish a certain total of points, rebounds, assists and more.
Such bets are significant in the sports betting investigation announced Thursday. Investigators pointed to a game from March 23, 2023, involving Rozier, who was then playing for the Charlotte Hornets.
Rozier played the first 9 minutes and 36 seconds of that game – and not only did he not return that night, citing a foot problem, but he did not play again that season. He finished with five points, four rebounds and two assists – a productive opening quarter, but well below his usual total output for an entire game. At the time, several bettors took to social media to say that something suspicious had happened regarding prop bets tied to their stats that night.
Broadly speaking, the NBA has expressed concerns about prop bets, while other sports leagues have expressed concerns about the potential for manipulation.
Earlier this year, Ohio Gov. mike devine He urged his state’s gambling commission to ban prop bets after Major League Baseball placed two Cleveland Guardians pitchers on leave during an investigation into sports betting.
What are the other threats and social implications?
Sports betting also faces criticism for opening the door to addictive gambling.
“The fact that it has become normalized, the advertising is aggressive, it’s available 24/7, micro-bets – all of this is driving tremendous increases in usage by individuals,” Taylor said, citing algorithms and other incentives used by betting platforms to increase engagement.
Rose-Berman says the platforms make the most of returning “the biggest losers.” Recent research shows that youth from low-income communities are particularly affected by the financial consequences associated with sports gambling.
“More than 90% of sports bettors won’t experience really significant negative impacts – but it’s really concentrated among those big losers and it’s going to be devastating for them,” he said.
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Associated Press reporters Tim Reynolds in Miami, David Lieb in Jefferson City, Missouri, and Alan Suderman in Richmond, Virginia contributed to this report.