Prosecuting insider sports betting will deter the rigging of games

By Washington Post editorial board

The NBA insider trading scandal should come as a shock to no one. It’s an inevitable result of the Supreme Court striking down limits on sports betting and restrictions on gambling ads. The indictments handed down on Thursday are part of a needed effort to clean up a system that’s gotten dirty.

After the court’s 2018 decision, the NBA partnered with FanDuel and DraftKings. Several teams signed deals with casinos. Stadiums now host on-site sports books. About $150 billion of sports bets were legally placed last year in the United States. That much money swishing around invites criminal activity, which requires policing.

It’s good news that the FBI arrested 35 people across 11 states on Thursday in connection with two interlinked cases. (The other involved rigged poker games.) As part of Operation “Nothing But Bet,” agents traced suspicious gambling activity involving seven NBA games back to information supplied by players and team staff.

Terry Rozier, now with the Miami Heat, was among those charged. He allegedly tipped off bettors that he would remove himself from a March 2023 game, claiming an injury. His co-conspirators bet more than $200,000 that he wouldn’t score as many points as the oddsmakers expected. Investigators said they can prove a cut of the winnings was subsequently delivered to his home. Rozier’s lawyer said his client is “not a gambler” and “he looks forward to winning this fight.”

Former NBA player Damon Jones, described in the indictment as an “unofficial assistant coach” for the Los Angeles Lakers in 2023, was charged with texting someone that LeBron James wouldn’t be playing that night, among other things. “Get a big bet on Milwaukee tonight,” he allegedly wrote, “before the information is out!” Jones pleaded not guilty.

FBI Director Kash Patel likened this to insider trading. Just as the Securities and Exchange Commission helps keep the stock market honest through market surveillance, tip lines and complaints, law enforcement has a role to play in protecting the integrity of betting markets, especially from organized crime.

New laws aren’t necessary. Rozier and Jones are charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Each offense carries a maximum sentence of 20 years.

It’s essential to prosecute under-the-table deals like these to the fullest extent of the law to deter other athletes. Players and team employees need to fear that getting involved in gambling won’t just end their careers but lead to time in prison. They also need to believe the chance of getting caught is reasonably high. As Joseph Nocella Jr., U.S. attorney for the Eastern District of New York, said at a news conference: “Violating the law is a losing proposition, and you can bet on that.”

Putting the genie of sports betting back in the bottle has become nearly impossible. If people want to gamble, that is their right, but the system can’t work without an honest market. Lax enforcement not only ruins the game for recreational gamblers but also for those who want to enjoy a fair competition without ever placing a bet.