The arrests of Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier for alleged sports betting and rigged schemes underscore the threat that unregulated gambling poses to the integrity of professional sports, according to the University of Michigan's Michal Lorenc.
"While the legalization of sports betting since the 2018 Supreme Court decision has created a financial windfall for the NBA and its partners, this scandal, like the prior lifetime ban of Jontay Porter, underscores the critical need for robust, uniform federal and state regulation," said Lorenc, clinical assistant professor of a sport management at U-M's School of Kinesiology.
His take: The probe exposed a core vulnerability in the sports betting industry-the proliferation of player proposition bets, or prop bets. As these criminal cases proceed, Lorenc predicts this issue will fester unless lawmakers and industry executives address the problem.
The integrity trap: Why prop bets are an exploitable vulnerability
"Prop bets allow gamblers to wager on highly specific player statistics or events within a game, rather than the final outcome, such as an over-under on a player's points, rebounds or assists. This market is especially susceptible to manipulation, a risk that NBA Commissioner Adam Silver has publicly acknowledged as too easy to exploit," Lorenc said.
"Prop bets are easily corrupted due to three main factors: spot-fixing, where players can influence a specific statistical outcome through small, discreet actions without affecting the final game result; the immense value of insider information, as nonpublic details on player injuries or availability give bettors an unfair, powerful edge; and the risk to lower-salaried players, who are more vulnerable to the temptation of manipulating their performance for a quick payout."
Inside the fix: 3 reasons prop bets are too easy to corrupt
"The scandal highlights the immense challenge of policing these micromarkets. The core challenge stems from three main areas: the need for more uniform regulations, restricting high risk bets and corporate policing," Lorenc said. "The need for uniform standards is critical, as the end of the federal betting ban in 2018 created a patchwork of state-level regulations and a more consistent federal framework is necessary for an effective integrity system.
"Second, both the NBA and the NBPA agree on restricting high-risk bets, actively uniting to support strict limitations on player prop bets to reduce the risk of performance manipulation and player harassment. Finally, there is the problem of corporate policing, as experts worry that the financial interests of legal sportsbooks-despite their ability to flag unusual activity-may conflict with security measures needed to police the massive volume of micro-bets effectively.
"Ultimately, the NBA gambling scandal is a loud signal that for professional sports to maintain public trust, the lucrative relationship with gambling must be balanced by strong, centralized regulation focused on protecting the integrity of the game, even if it means sacrificing some of the profits generated by the most easily manipulated wagers, particularly those surrounding a single player's performance."
