Sports Betting: A Dark Industry Moves Into Light
Mobsters, crooked athletes, gambling addicts, and all-around unsavory characters. It sounds like the narrative of an old Hollywood script, but they all played roles in some of the most notorious cases of illegal gambling in American sports.
Last week the Supreme Court struck down a 26-year old law that kept sports betting illegal outside Nevada. Wagering on pro and amateur sports is now permitted in states that have enacted lawful gambling.
The ruling brings out from the underground an industry that has been estimated by some officials to be as large as $400 billion a year. Though, that figure is most likely exaggerated.
As a real-world example, sports betting in the UK where the recreation is legal was UKP 10 billion in 2017. Adjusted for an American population that is 5x greater and a sports market that is deeper and broader, illicit betting in the U.S. is probably closer to a $70-$100 billion handle.
Still, the numbers cannot be ignored and they easily dwarf the $5 billion legitimate business that Las Vegas churns out annually in sports gambling.
Besides the betting public, winners of the recent verdict are state jurisdictions that will benefit from fresh tax rolls, online sports books, brick & mortar gambling parlors, and the leagues themselves who will demand “integrity” fees.
Sports integrity is the right question to explore. Will a regulated gambling industry stamp out the nefarious elements around sports?
Historically, the insiders who were most vulnerable to game fixing activities were unpaid and underpaid athletes, and compulsive gamblers who were professionally connected to sports. They were typically greased by shady outsiders who rounded up money and made the odds.
In the Black Sox scandal, the most infamous case of sports corruption in American history, eight members of the Chicago White Sox team were accused of intentionally losing the 1919 World Series to the Cincinnati Reds.
Disgruntled with meager salaries and resentful of team owner Charles Comiskey for his miserly ways, the players agreed to take money in exchange for throwing off the Series.
Though eventually found not guilty by the courts, all were subsequently banned from baseball, including star slugger “Shoeless Joe” Jackson who today still holds the third highest career batting average in MLB at .356.
On the amateur level, the biggest scandal to ever hit college athletics came to a head in 1951 when basketball players from seven different schools were bribed to shave off points in games.
Among those teams were the CCNY Beavers (City College New York), the Cinderella squad that in 1950 won both the NCAA and NIT championships.
Since student players are potential targets for financial inducements, the NCAA, which fought against legalizing sports betting, is a loser in the Supreme Court decision.
The other group of insiders were the inveterate gamblers such as 3x World Series champion Pete Rose who permanently lost his bid for the Hall of Fame due to his betting activities, which included gambling on his own team as a player and manager.
In 2008, long-time NBA referee Tim Donaghy was sentenced to prison for betting on games that he officiated and where he made calls that affected point spreads.
Strong licensing measures, technological safeguards, and mandatory monitoring of unusual betting-line patterns should help preserve the integrity of athletics in the new world of legalized sports gambling.
Nevertheless, just like the stock market, or any industry where large amounts of money change hands, we should not expect a future free of the occasional scam and scandal. As we all know too well, history never fails to repeat itself.
BASKETBALL February 20, 2010 Kirk Hinrich of the Chicago Bulls breaks a franchise record, scoring his 771st three-point field goal and clearing the 770 mark set by Ben Gordon. Coming out of the University of Kansas, Hinrich put in stints with the Bulls, Wizards and Hawks during his NBA career from 2003-2016. He was a member of Team USA when they won bronze at the 2006 FIBA World Championship in Japan.
HOCKEY February 15, 2000 NJ Devils’ Martin Brodeur becomes the first ever NHL goalie to receive credit for a game-winning goal. Facing the Flyers, he was the last Devil to touch the puck before it went into the opponent’s net when one of the Flyers’ own players accidentally scored his own goal. Considered one of the best goalies of all time, Brodeur won 3 Stanley Cups and 2 Olympic gold medals representing Canada.
MOTOR RACING February 18, 1990 Derrike Cope wins the 32nd edition of the Daytona 500 stock car race. Driving a Chevrolet for the Whitcomb Racing team and winning his first NASCAR chase, Cope beat out runner-up Terry Labonte and third place finisher Bill Elliott. Dale Earnhardt led the pack for 155 laps, or ¾ of the race and came short towards the end when his car ran over a piece of metal on the track, shredding his right rear tire.
OLYMPICS February 15, 1980 American Eric Heiden wins the 500 meter speed skating race at the Winter Olympics in Lake Placid, New York. The Wisconsin native wrapped up the tournament with a total of 5 gold medals, including the 500, 1000, 1500, 5000, and 10000 meter chases. Heiden broke 4 Olympic records and 1 world record in the competitions and is considered the best overall athlete- sprint and long- in the sport’s history.