NBA Gambling Arrests Ignite Congressional Outcry
Recent FBI arrests connected to an illegal gambling network linked to the NBA have reignited calls among lawmakers across the political spectrum for comprehensive federal reforms in sports betting regulation. These proposals include a nationwide prohibition on collegiate prop bets, stricter advertising regulations, and increased enforcement against offshore gambling operators. Despite multiple legislative efforts over recent years, progress has been minimal since the 2018 repeal of PASPA, the federal law that previously banned sports betting nationwide.
A Senate Judiciary Committee hearing in December 2024 briefly shifted focus, with discussions on the matter stalling afterward. Committee Chair Senator Dick Durbin (D-Ill) indicated that the conversation was not over, but the issue remains largely dormant for now. Meanwhile, some legislators are actively revisiting previously introduced bills, while others are engaging with the topic anew, reflecting a renewed urgency to address the integrity of sports betting.
In the wake of the NBA gambling scandal, the House Committee on Energy and Commerce has requested a briefing from NBA Commissioner Adam Silver. The committee seeks comprehensive details about the incident, the league’s response, and whether its current code of conduct is sufficient. Additionally, they are interested in whether the NBA is reconsidering its partnerships with sports betting companies. The committee’s letter underscores the broader concern: “These allegations raise serious concerns about sports betting and the integrity of the sport in the NBA, which harms fans and legal sports bettors.” The committee’s jurisdiction over interstate commerce, consumer protection, and sports underscores its interest in safeguarding the integrity of the game.
Simultaneously, Senators Ted Cruz (R-Texas) and Maria Cantwell (D-Wash) have demanded the NBA produce documents related to any internal investigations into illegal gambling activities involving players and coaches since 2020, with a deadline set for November 10. Their letter emphasizes the importance of maintaining trust in the NBA: “The integrity of NBA games must be trustworthy and free from the influence of organised crime or gambling-related activity. Sports betting scandals like this one may lead the American public to assume that all sports are corrupt.”
Senator Durbin has also expressed support for a nationwide ban on prop bets, citing the need to uphold sports integrity. He highlighted the increasing frequency of scandals, stating, “The temptation for athletes, seasoned coaches and professional officials to adjust performances is real. Sadly, scandals are becoming more and more frequent. Congress, states and sports leagues must all work to maintain the integrity of sports and prevent future sports betting scandals.” Industry watchdogs, including league compliance teams, regulated sportsbooks, and integrity monitors, have flagged suspicious wagers that contributed to ongoing investigations.
Meanwhile, NCAA President Charlie Baker is spearheading efforts to prohibit college player prop bets across the United States. Several states, such as Ohio, Louisiana, and Maryland, have already enacted or retroactively imposed bans on collegiate prop betting. However, extending such restrictions to professional sports presents additional challenges. U.S. Rep. Michael Baumgartner, who introduced a bill earlier this year to ban collegiate prop bets nationwide, acknowledged that a similar ban on professional props might be unlikely to pass Congress.
Opponents of such bans warn that banning prop bets could inadvertently push demand into offshore markets, complicating regulatory efforts. To combat this, Senators Richard Blumenthal (D-Conn) and Katie Britt (R-Ala), along with ten other bipartisan lawmakers, sent a letter to Attorney General Pam Bondi urging the Department of Justice to intensify efforts against illegal offshore gambling operations. The letter highlights concerns about the impact on youth, noting that all 50 state attorneys general have previously called on the DOJ to take action against offshore betting websites under the Unlawful Internet Gambling Enforcement Act.
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The push for regulation comes amid a broader crackdown, with regulators across the country issuing hundreds of cease-and-desist orders to illegal gambling operators. In 2023, multiple state agencies appealed to the DOJ for additional support in dismantling illegal online gambling markets. During recent Senate Judiciary hearings, Attorney General Bondi was questioned about the DOJ’s strategy concerning offshore gambling, with Senator Britt emphasizing the importance of protecting minors from these illicit sites. Her office indicated ongoing efforts to address this issue, recognizing offshore sites as a significant factor in the rise of illegal sports betting among minors.
The bipartisan group of lawmakers, including Blumenthal and Rep. Paul Tonko (D-NY), continues to champion the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). Reintroduced in March and currently dormant, the legislation aims to establish national advertising standards, enforce affordability checks, ban collegiate prop bets, and restrict the use of AI targeting technology in betting. The recent NBA scandal has reinvigorated support for the bill, with advocates arguing that unchecked growth in legal sports betting undermines public trust and facilitates corruption.
Blumenthal emphasized that the SAFE Bet Act would help prevent coaches and athletes from betting on their own games and ensure robust oversight of gambling companies. “These troubling indictments are the most recent signal that the sports betting industry has corrupted the game to the detriment of fans and victims of gambling addiction,” he stated. “Letting gambling companies turn sports into the wild west has been an abysmal and absolute failure – it’s time for Congress to enact the SAFE Bet Act into law.”
As the debate over sports betting continues, it is clear that lawmakers remain committed to balancing regulation with the preservation of the sport’s integrity, especially in light of recent scandals exposing vulnerabilities in the current system.
