From MLB superstar Shohei Ohtani to now former NBA player Jontay Porter, recent stories surrounding sports integrity have predictably led to scrutiny of America’s still-new legal sports betting market.
These headlines wrongly depict the workings of the legal and regulated market and fail to recognize the persistent issues and predatory nature of the illegal market. It’s time to refocus on the facts and recognize that legal sports betting remains a solution, not a problem, when it comes to preserving the integrity of the games.
Remember, sports betting isn’t a new phenomenon. Prior to 2018, there were plenty of opportunities to bet — whether with shady bookies or navigating the murky waters of offshore websites. But the landscape has changed drastically in six short years.
Today, 38 states and the District of Columbia have launched legal sports betting markets, bringing sports wagering out of the shadows and into the light of regulation. These regulated markets have delivered on the promise of consumer protections, tax revenue for communities and transparency that enhances sports integrity.
Legal sportsbooks are required to meet federal anti-money laundering regulations and deploy Know Your Customer tools.Getty AI-Generated Images
In fact, legal sports betting’s success requires absolute confidence in the integrity of competition. Fans will only bet on sports if they trust the games are fair. And that’s why American Gaming Association members — all licensed operators — have a vital interest in protecting the integrity of every game. Legal sportsbooks have robust compliance programs to actively monitor for market anomalies. We leverage artificial intelligence, expert analysis and third-party integrity monitors to continually sift through data for concerning trends. If any suspicious activity is identified, it is immediately flagged for regulators, sports leagues and law enforcement to investigate and take action as appropriate.
Legal sportsbooks also are required to meet federal anti-money laundering regulations and deploy Know Your Customer tools for all customer sign-ups. This includes verifying customer age and identity through official identification or Social Security numbers, allowing us to identify customers involved when we flag suspicious activity.
The outcome of this robust process? Bad actors — like the University of Alabama’s baseball coach — are identified, investigated and held accountable to protect the integrity of the game and wagers.
The same can’t be said of the illegal offshore websites and local bookies. In fact, the recent allegations involving Ohtani’s interpreter — centered on activity conducted through an illegal bookmaker — provide a stark reminder that the regulated industry still is competing against a robust and predatory illegal marketplace, one that doesn’t play by the same rules and presents significant risk to sports integrity. According to our estimates, Americans bet $64 billion on sports with illegal operators each year. We are making remarkable progress migrating bettors out of the illegal market and into the regulated market, but there’s still work to do.
You would think the reaction to these recent incidents would be to double down on efforts to stop illegal gambling. Instead, we’re seeing headlines and counterproductive proposals to limit advertising in the legal market. These restrictions may feel good, but will have unintended, yet predictable, consequences. The reality is people won’t stop betting; they’ll go back to the illegal market.
We are working hard to create and sustain a legal sports betting industry in this country. There’s a shared commitment across the legal wagering ecosystem on where we need to go from here. Operators are educating consumers on responsibility. Leagues and teams are launching partnerships to educate players. Congress recently issued a directive to the Department of Justice to go after the illegal market.
Safe, transparent and responsible sports betting is here. The legal market is doing its job while the illegal market continues to prey on Americans. We must remain focused on supporting the legal market’s protections and investments that preserve integrity.
Bill Miller is president and CEO of the American Gaming Association.
Questions about OPED guidelines or letters to the editor? Email editor Jake Kyler at jkyler@sportsbusinessjournal.com
