Gaming Commissions Actively Evaluating Markets, Asking For League Suggestions to Avoid Further Sports Betting Manipulation

• Several state gaming commissions are evaluating their sports betting markets for potential manipulation and may take action in the future
• Regulators are open to suggestions from professional sports leagues to make markets safer for consumers
• The New York State Gaming Commission has pledged to eliminate sports betting markets “susceptible to manipulation”

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Following several sports betting scandals, state gaming commissions are actively monitoring their sports betting markets and may take impactful action to eliminate events from their catalogues vulnerable to corruption.

Sports Betting Dime reached out to a number of gaming commissions to see if action is being taken in the wake of two sports betting scandals in which professional athletes manipulated event outcomes.

Most gaming commission spokespersons reported to Sports Betting Dime that the regulatory bodies were actively evaluating their markets, while several also said they were open to suggestions from professional sports leagues to deal with potential vulnerabilities and may eliminate betting markets that pose a threat to event integrity.

Reaching Out To Leagues For Help

Gaming commissions are on high alert for manipulation and corruption following two sports betting scandals involving the NBA and MLB.

Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were charged in a sports betting and money laundering conspiracy, as the pitchers allegedly rigged pitches during the MLB season and shared information with corrupt sports bettors.

This followed news that Miami Heat guard Terry Rozier had been arrested in October through a federal investigation by the U.S. Attorney’s Office for the Eastern District of New York for potentially manipulating a 2023 game performance as part of an illegal sports betting ring. Shortly after, news also broke that current NBA coach and hall of fame member Chauncey Billups, plus former player and coach Damon Jones, had also been arrested for their roles in an illegal poker scheme involving New York families of the mafia.

A spokesperson for the Illinois Gaming Board reported that its members “take matters of gaming integrity and sports integrity seriously” as it continues to “closely monitor developments in this area.”

The spokesperson said the Illinois Gaming Board currently has a process in place where it may prohibit particular betting markets or bet types if it determines that such markets are unfair to consumers or compromises the integrity of the sports or the Illinois sports betting market.

This rule, the spokesperson said, allows professional sports leagues to submit requests to restrict certain betting types or markets.

“Both the National Football League (NFL) and Major League Soccer (MLS) submitted requests to restrict certain wager types, which the IGB approved based on concerns related to consumer protection, player welfare, and the preservation of game integrity,” the spokesperson said.

The NFL submitted an “objectionable wager” request to the board earlier this year, requesting bets be prohibited on the following events:

• Player injuries
• Fan safety
• Player misconduct
• Penalties
• Replay results
• Officiating assignments
• First play of the game
• Roster or personnel decisions
• Players to miss a field goal or extra point try
• First pass to be incomplete
• Any other wager that is pre-determined or 100% determinable by one person in on play

The Illinois Gaming Board approved the request. It also approved a February 2024 request from MLS officials to prohibit wagers on specific players receiving a red or yellow card, as well as if any red or yellow cards will be shown during a soccer match.

Actively Monitoring Markets

Most gaming commissions reported to Sports Betting Dime that its regulators were actively monitoring their sports betting markets and may take future action if corruption is observed.

A spokesperson for the Arizona Department of Gaming praised the regulated markets for detecting and exposing the recent sports betting scandals, noting that integrity monitoring systems are working as intended.

“Recent scandals highlight why all event-based wagering activities, especially those tied to sporting outcomes, require strong regulatory oversight to safeguard the public interest, protect consumers, and uphold market integrity,” the spokesperson said. “The department takes its regulatory role to ensure market integrity seriously. While we have no specific updates to share at this time, the department continually monitors the market and may consider this topic in future discussions or rulemaking as we assess emerging trends and integrity concerns to ensure a safe and fair wagering environment for Arizonans,” the spokesperson said.

The Michigan Gaming Control Board, a spokesperson told Sports Betting Dime, is “certainly considering the topic further in light of recent developments.”

“While we are actively monitoring and evaluating relevant information, we do not have any comment regarding specific actions or policy changes at this time,” the spokesperson said.

New York Taking More Active Role

Leadership for the The New York State Gaming Commission revealed earlier this week that commission staff will examine all state individual player prop markets that are game specific and certain single-game specific, multi-leg individual player parlay markets to determine if any are unprotected from sports betting manipulation.

 If certain markets are determined to be vulnerable to corruption, Chairman Brian O’Dwyer said the commission will eliminate those markets.

“If we believe any wager is susceptible to manipulation, we will eliminate it, not restrict its offering. The problem may be proposition betting, inherent by its very nature, it is more susceptible to manipulation that betting on an outcome or a team as a whole. It may also be more attractive to underage and problem gamblers, especially coupled with parlay wagering. We will take that into consideration as well,” he said.

O’Dwyer said the commission will also be sending letters to the more than 70 professional sports leagues in which the state features sports betting markets for limitation suggestions on wagers for their individual sports.