The Michigan Gaming Control Board (MGCB) will be the first state regulator to publicly review regulation standards following the recent NBA sports betting scandal, the MGCB announced Monday.
The FBI announced the arrests and indictments of Miami Heat guard Terry Rozier, Portland Trail Blazers coach Chauncey Billups, and more than 30 others for two separate sports betting and gambling-related frauds Oct. 23. Billups was charged with conspiracy to fix a poker game with mafia ties, and six of the accused, including Rozier, were charged in a sports betting case. Rozier was accused of exploiting players’ information to win prop bets for himself and others.
In response to the scandal, the MGCB is taking a closer look at its commitment to gambling safeguards, per the release. The board put together a list of key measures, including mandatory integrity monitoring, review and approval of events and wager types, prohibition on insider betting, and internal control requirements.
With the new measures in mind, the MGCB will more closely review all licensed operators, events, and individuals associated to ensure compliance with state regulations.
The MGCB also warned against player props being at risk for manipulation, as these were the types of wagers exploited by Rozier and others in the scandal, and the overall dangers of betting with illegal operators. The latest scandal wasn’t the first for the NBA involving prop bets — in April 2024, NBA Commissioner Adam Silver banned two-way Toronto Raptors player Jontay Porter for life after federal authorities opened an investigation into him sharing information with bettors. Porter twice removed himself early from games so “under” bets would pay out. Porter is now awaiting sentencing after pleading guilty to conspiracy to commit wire fraud. In addition, Detroit Pistons guard Malik Beasley is under investigation by the NBA and federal prosecutors for gambling violations.
Congress getting involved, too
The MGCB is the first state regulator to take action after the scandal, but the federal government stepped in just a day after the initial arrests, despite having no jurisdiction over the issue.
The House Committee on Energy and Commerce requested a letter from NBA Commissioner Adam Silver on Oct. 24 asking for details on fraud and illegal betting relating to the NBA, the NBA’s Code of Conduct rules on illegal betting, outlining gaps in regulations that might allow for illegal betting, details on partnerships with sports betting companies, and any action the organization will take.
Silver had until Oct. 31 to answer the letter, though the NBA already had a zero-tolerance policy in place for employees on sports betting specifically on NBA, G League, WNBA, and other related leagues.
The NBA formally announced that it is reviewing its own gambling policies, and Rep. Paul Tonko, author of the SAFE Bet Act, last week wrote a letter to seven U.S. professional sports leagues calling state regulators “fundamentally flawed.”
