Sports Gambling Scandals Rock Pro Leagues, But Lucrative Betting Deals Likely to Stay

Another wave of sports betting scandals has shaken professional leagues in the United States, following the arrests of an NBA coach and a current player accused of ties to illegal gambling and rigged poker games. But despite renewed controversy, experts say the lucrative ties between sports organizations and sportsbook companies aren’t going anywhere.

Victor Matheson, an economics professor at the College of the Holy Cross, says sponsorships between major leagues and legal sportsbooks bring in more than $1 billion annually. These deals have become essential to team and league finances, he explained, and are not something anyone is eager to give up.

Since a 2018 Supreme Court ruling allowed states to legalize sports gambling, leagues from the NFL to the NBA have embraced betting partnerships, some even hosting physical betting lounges inside stadiums. Legal wagers on sports reached $160 billion last year, generating $13.7 billion in gross revenue, according to the American Gaming Association.

Author Michael Lewis, whose podcast “Against the Rules” recently examined the gambling boom, says the revenue isn’t just from sponsorships. Betting drives advertising, boosts game viewership, and increases broadcast rights fees — all critical revenue streams for professional sports. “It’s a way to keep fans engaged in meaningless games,” Lewis said.

While the NCAA still bans betting on college sports, it recently allowed athletes to wager on professional games. Even so, the college sports world benefits indirectly from gambling interest, especially during March Madness, when fans bet billions on tournament brackets.

Experts warn that leagues risk undermining trust if scandals continue. Jonathan D. Cohen, author of “Losing Big: America’s Reckless Bet on Sports Gambling,” said leagues entered the betting boom too quickly. “It just speaks to this sort of recklessness with which we dove in,” he told CNN.

Despite the risks, the money behind legal sports betting is too substantial to ignore. As Lewis put it, “We’re not at the place where people are genuinely questioning the integrity of the sport — but we’re not that far away.”

Credit: CNN Newsource

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