Michigan Gaming Regulators to Evaluate Sports Betting Market Following Scandal

• The Michigan Gaming Control Board announced it will evaluate risks associated with player prop bets
• Certain player prop bet markets were exploited in recent NBA betting scandal
• Describes the sports betting scandal as a “wake-up call for the entire industry.”

Changes may potentially be coming to the Michigan sports betting market in the wake of the NBA sports betting scandal.

The Michigan Gaming Control Board announced today it will monitor risks associated with player prop bets to see if current safeguards are acceptable or if additional changes are necessary.

“Certain types of prop bets present a higher risk of manipulation, particularly when tied to insider knowledge or player behavior,” MGCB Executive Director Henry Williams said. “As regulators, we must assess whether current safeguards are sufficient or if additional restrictions are necessary.”

Evaluating Michigan Sports Betting

The Michigan Gaming Control Board announced it has the ability to review its markets to ensure compliance with Michigan’s regulatory standards. Certain wager types that are easily manipulated are prohibited.

“The integrity of sports betting in Michigan depends on more than enforcement – it requires proactive safeguards designed to deter and detect misconduct before it occurs,” Williams aid. “We’ve built a regulatory structure that prioritizes transparency, accountability, and consumer protection.”

Williams also warned the public about the dangers of the illegal gaming industry, which operators without accountability, oversight, or consumer protections.

“Illegal gambling undermines public trust and puts Michigan residents at risk,” Williams said. “We remain committed to disrupting these operations and educating the public about the benefits of betting legally and responsibly.”

The evaluation comes in the wake of an NBA sports betting and poker scandal that saw several current and former members of the NBA manipulating player prop outcomes and sharing insider information with an illegal sports betting ring.

The sports betting case, dubbed “Operation Nothing But Net” by the FBI, included similar individuals who orchestrated the sports betting scheme involving former Raptors center Jontay Porter. Porter pled guilty to conspiracy to commit wire fraud for his role in manipulating his performance outcomes and is awaiting sentencing. He has also been permanently banned from the NBA.

Six individuals have been arrested, including current NBA guard Terry Rozier, for their roles in manipulating the outcome of game performances. A federal investigation for Rozier was announced in January, centering around a March 23, 2023 game when Rozier was a member of the Charlotte Hornets. Rozier played less than 10 minutes in the game after leaving with what was described as a foot injury. Rozier averaged more than 35 minutes a game that season.

The individuals involved in the conspiracy knew when specific players would be sitting out futures games or who planned to pull themselves out of competition early, for purported injuries of illnesses.

The defendants placed bets on games involving the Los Angeles Lakers, Toronto Raptors, Charlotte Hornets, and Portland Trail Blazers, he said. They did so through online sports betting platforms and in-person at casino sportsbooks.

Future Regulatory Action a Possibility

As more information comes in surrounding the federal investigation of the sports betting scandal, the MGCB noted it will use the findings to form future regulatory actions and strengthen Michigan’s sports betting framework.

“This case is a wake-up call for the entire industry. We must remain vigilant, adaptive, and committed to protecting the integrity of the game – and safety for those who enjoy it.”