Who Didn't See This Coming?

With sports betting becoming legalized in more and more states and every major league entering into some sort of sponsorship agreement with the daily fantasy sites (seriously, how many different things can be branded "DraftKings" or "FanDuel" in a given broadcast?), it was only a matter of time before the influence of gambling reared its ugly head.  So, it shouldn't have come as a surprise to anyone, then, that Terry Rozier of the Heat is among the figures who was arrested last week as part of an FBI raid that was the result of a multi-year investigation into illegal gambling?  The crime he's being accused of?  Conspiracy to commit wire fraud.  

Rozier played for the Hornets in 2023, and there was suspicious gambling activity regarding his stats in a game against the Pelicans that year.  Rozier removed himself from the game with an "injury," thus ensuring he'd hit the under in points, rebounds, assists, etc.  Because of the unusual amount of wagers coming in, some sportsbooks stopped accepting bets on Rozier that night.  The NBA investigated and didn't find anything that ran afoul of league rules, but this game also drew the FBI's attention and, in their eyes, seems to confirm his involvement in the illegal gambling ring.

There's obviously so much more to come out regarding this case, so I don't want to speculate.  But certain details have emerged.  Rozier and a handful of others allegedly shared non-public information about injuries or when players would be sitting out for other reasons.  That inside information was then spread to a network of bettors, who'd wager hundreds of thousands of dollars on the outcome.

Gambling and manipulating the results has always been a risk for the major sports leagues.  And the influence of gamblers trying to fix games goes back to the beginning of organized sports themselves.  Boxing matches in the early 1900s, and, of course, the Black Sox Scandal in 1919 are just two early examples.  The college basketball scandal in the 1950s.  It even impacted TV quiz shows in the early days of TV!  And, let's not forget, Pete Rose's lifetime ban for gambling.  

That's why partnering with the daily fantasy sites was always going to be a risky proposition.  From a business standpoint, it makes sense.  These are recognized as legitimate businesses that have a vested interest in the outcome, and they have plenty of money available for sponsorships and other opportunities, so working together made sense.  Especially since these sites were still going to do it anyway. 

The thing that makes it even tricker with the daily fantasy sites, though, is that they're so much more elaborate than just who'll win the game and whether they'll cover the spread.  You can make a bet on pretty much anyone or anything involved in the game.  Things like an individual player's stats.  So, they don't need to throw the game in such an obvious way that their team loses.  All they need to do is manipulate their own stats.  Which, frankly, is much harder to notice.  And what makes it all the more challenging to catch.

It isn't just pro sports where they keep an eye on gambling activity.  The potential influence of gambling has always been just as high, if not higher, in college, where athletes weren't paid for their services until recently.  NCAA policy has always been that any form of sports wagering is prohibited for both student-athletes and athletic department personnel.  That was set to change next month, though, when Division I voted to allow wagering on professional sports (while still not allowing it at the collegiate level).

If there's anything positive to come out of the Terry Rozier news, it's that his arrest caused the NCAA to reconsider that provision.  There were already a lot of people uneasy about it and the slippery slope they'd be creating (a lot of these guys will have friends on professional rosters and could just as easily get inside information), and that uneasiness led to the NCAA's decision to delay implementation by a month.  It's unlikely all of this will be settled by the end of November, but that extra month at least gives them time to consider all of the possible ramifications before it goes into effect.  And, by delaying the implementation, that gives them additional time to pull back the rule change.

SEC Commissioner Greg Sankey sent a letter to NCAA President Charlie Baker flat out calling the decision "a step in the wrong direction" and imploring the NCAA to reconsider.  One of his major concerns was the removal of any guardrails regulating it.  While the NCAA's thought process in allowing gambling was to keep pace with the ever-changing environment, it seems they also caught people unprepared or off-guard (or both!).  Sankey's suggestion was to modify the existing policy rather than eliminate it, which sends the wrong signal and could compromise the integrity of college sports.

So, in a way, it's a good thing this came out now.  Because there are several active cases involving college basketball players, as well.  While the details of these individual cases haven't been made public, there are currently 13 players from six different schools under investigation for "integrity issues" regarding potential gambling violations.  Most of those players have been withheld from competition during the probe.  So, it's much bigger than just Terry Rozier.

In a separate but related FBI sting, Portland Trail Blazers Head Coach Chauncey Billups was also arrested on the same day as Rozier.  Billups did disclose some information regarding Blazers games, but the FBI was more concerned about his alleged involvement in rigged poker games where players were taken for millions of dollars.  The set-up for these poker games, arranged by organized crime figures, looks pretty elaborate.  There were your typical things like marked cards, rigged decks, and players giving signals, as well as X-ray tables.

Players would get lured into these games by the opportunity to play with sports figures.  Billups was one of those sports figures.  His alleged involvement beyond that is unclear, but Billups did bring people in and did play in the games, knowing they were rigged.  That alone is enough to charge him for conspiracy.

What Billups is accused of doing is bad, obviously.  But it's far different than what Rozier allegedly did.  And it needs to be treated as such.  Because, personally, I feel what Rozier did is far worse.  Yes, there were unwitting "marks" who got swindled out of millions in the poker games.  There were far more innocent victims of any stat rigging or other manipulation that was done in those NBA games.  More importantly, it puts the integrity of the entire league at risk.  That's the far greater problem.  And it's one that the NCAA is leaving itself wide open to if they do allow the rule change that permits gambling.

Daily fantasy sports aren't going away.  I agree that it's tough for the leagues to strike a balance.  Sports betting is legal, so you want to have that relationship.  But you also want people to be confident that the games are being played fairly.  Right now, that's a question.  And it'll only get worse if the NCAA does go through with their plans to allow it.  So, perhaps the Terry Rozier situation can serve as a learning experience.  And, if that's the case, maybe some good did come out of it.