Recent sports gambling scandals, including the arrest of an NBA coach and player, have raised questions about the future of leagues’ partnerships with sportsbook apps. However, despite integrity concerns, these lucrative deals are unlikely to be terminated due to their substantial financial benefits.
This week, the sports world was rocked by the arrests of an NBA coach and a current player for their alleged involvement in illegal sports betting and rigged poker games. The charges underscore the growing risks associated with the proliferation of legal sports gambling. This incident follows other high-profile cases, such as suspensions in the MLB and NFL, highlighting a pattern of gambling-related misconduct. Experts warn that such scandals could erode public trust in the integrity of games. Yet, the immediate response from leagues has been to enforce rules rather than sever ties with betting partners. The rapid expansion of sports betting has made such incidents more visible and consequential.
Legal sports betting has exploded in the United States since the Supreme Court’s 2018 decision to strike down the federal ban, known as PASPA. In 2024, Americans wagered approximately $160 billion on sports, far exceeding lottery ticket sales. Gross gambling revenue reached $13.7 billion, a 23% increase from the previous year, according to industry data. This growth has been driven largely by online platforms, making betting accessible to millions. Leagues and teams quickly capitalized on this trend, signing sponsorship deals worth billions of dollars. These agreements include physical betting shops in stadiums and extensive advertising during games.
The financial incentives for sports leagues are immense. Direct sponsorship deals with sportsbooks like FanDuel and DraftKings generate over $1 billion annually for major leagues. Additionally, betting companies spend hundreds of millions on advertising, which boosts revenue for broadcast networks and, in turn, increases the value of media rights deals. In an era of declining viewership, gambling helps maintain fan engagement by allowing bets on various aspects of games, not just outcomes. This has become a critical revenue stream, especially as traditional sources face challenges. Economists note that this new money is hard for leagues to refuse, given its scale and growth potential.
Beyond the NBA, other leagues have faced similar issues. This summer, two Cleveland Guardians pitchers were suspended following an MLB investigation into sports betting. In 2023, six NFL players were penalized for gambling on league games. These incidents demonstrate that no sport is immune to the temptations and risks posed by widespread betting. The NCAA, while avoiding direct sponsorships, benefits indirectly from the betting frenzy during events like March Madness, which attracted $3.1 billion in wagers in 2024. This complex relationship shows how deeply embedded gambling has become in the sports ecosystem.
Experts emphasize the delicate balance between revenue and integrity. Victor Matheson, an economics professor, stated that sponsorship deals are “clearly very important” to leagues’ finances. Author Michael Lewis, who explored sports gambling in his podcast, warned that leagues risk “poisoning their sports” if they don’t manage the risks properly. Jonathan D. Cohen, author of a book on sports gambling, criticized the “recklessness” with which leagues embraced betting without fully understanding the consequences. They agree that while scandals are concerning, the economic dependencies make it unlikely for deals to be canceled.
In conclusion, while recent gambling scandals have highlighted significant integrity issues, the deep financial ties between sports leagues and betting apps suggest that these relationships are here to stay. Leagues are likely to implement more safeguards rather than abandon the revenue. The ongoing challenge will be to preserve the integrity of sports while benefiting from the economic opportunities that legal gambling provides. As the industry evolves, continuous monitoring and adaptation will be essential to balance these competing interests.