The NBA has circulated a league-wide memo urging teams to reassess gambling policies and ensure players and personnel are educated on potential risks following federal arrests and scrutiny over alleged betting activity.
As previously reported by The Dallas Express, Miami Heat guard Terry Rozier and Portland Trail Blazers head Coach Chauncey Billups were each arrested due to alleged involvement with two separate gambling rings.
The NBA described the situation in the memo as a catalyst for a broader evaluation of how betting is monitored and regulated across the sport, writing that it 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,” per Sports Illustrated.
In the memo, the NBA highlighted concerns over proposition bets, particularly those on individual player performance.
These bets allow fans to select whether they believe players will collect more or less of a particular statistic, with NBA proposition betting largely revolving around points, rebounds, assists, blocks, and steals.
“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. In particular, proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny,” wrote the league in the memo, according to Sports Illustrated.
One potential option for the league is a shift in the types of betting allowed, as sportsbooks currently allow bettors to select both over and under propositions on NBA players during games.
As previously reported by The Dallas Express, the NBA could consider shifting those markets to allow bettors to place money only on overs, which could significantly reduce a player’s ability to manipulate certain statistical outcomes.
The league also highlighted potential concerns with other aspects of the gambling world, stating that it will be reviewing injury reporting, personnel training, and safety measures to mitigate gambling-related risks.
This memo further emphasized the growing role of AI and data monitoring in identifying suspicious betting patterns.
“We also are exploring ways to enhance our existing internal and external integrity monitoring programs to better utilize AI and other tools to synthesize all available data from betting operators, social media, and other sources to identify betting activity of concern,” continued the league, per Sports Illustrated.
Industry partners have already expressed support for the NBA’s efforts to manage sports gambling, with Matt King, CEO of Fanatics Betting and Gaming, saying the company has shown a willingness to work with the league on these matters.
“When the league asked us not to offer props on two-way contract players … we did that immediately,” he said, per CNBC. “It’s common sense regulation, it’s common sense evolution, and it’s a commonsense decision.”
This scandal has also prompted multiple lawmakers to begin investigating the rise in sports betting, resulting in the Senate Committee on Commerce, Science and Transportation crafting a letter to NBA Commissioner Adam Silver.
This letter states that this scandal is a “matter of Congressional concern” and that the committee “needs to understand the specifics of the NBA’s investigation” into previous allegations of gambling.
“The integrity of NBA games must be trustworthy and free from the influence of organized crime or gambling-related activity. Sports betting scandals like this one may lead the American public to assume that all sports are corrupt,” continued the letter.
Similarly, the House Committee on Energy and Commerce wrote a letter to Silver to request information about the scandal, writing that these allegations “raise serious concerns about sports betting and the integrity of sport in the NBA, which harms fans and legal sports bettors.”
More specifically, the Committee outlined five points that Silver must address:
- Details about the fraudulent, illegal, and alleged betting practices in connection with NBA players, coaches, and officials, including the actions of NBA players and coaches identified in the recent indictment, as well as prior instances, some of which are identified above.
- Actions the NBA intends to take to limit the disclosure of nonpublic information for illegal purposes.
- Whether the NBA’s Code of Conduct for players and coaches22 effectively prohibits illegal activity, including the disclosure of nonpublic information for the purposes of illegal betting schemes.
- An explanation of the gaps, if any, in existing regulations that allow illegal betting schemes to occur.
- Whether and how the NBA is reevaluating the terms of its partnerships with sports betting companies.
The Committee requested brief answers to these questions by no later than October 31, though it remains unclear whether Silver has discussed them with the lawmakers at this time.