ORLANDO, Fla. – The fallout from this week’s sports betting arrests is sending ripple waves across the major sports, not just the NBA.
On Thursday, federal authorities arrested more than 30 people, including Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier, in a sweeping investigation into illegal sports betting operations.
The NBA placed both Billups and Rozier on immediate leave from their teams following their arrests, and the case remains under investigation by federal authorities.
As more revelations emerge, many are asking if gamblers who lost money in games that may have had an outside influence could have any legal recourse.
Legal experts say that’s probably not an option, due to the way the bets are made and who is accused of breaking the rules.
“Those were almost impossible lawsuits to win, because the relationship of the bettor is with the sports book, not with the league,” said Wallach. “Most of the prior lawsuits sought recompense from the sports leagues, and the sports leagues don’t have a contractual relationship with the fan who places a bet on an online betting website.”
Betting websites contacted by News 6 about these arrests have either offered no comment or said there will not be any refunds.
Sophisticated operation uncovered
Federal prosecutors said the defendants used non-public injury and lineup information to place fraudulent wagers worth hundreds of thousands of dollars. The investigation revealed that data collected by league-partnered betting companies helped authorities uncover the operation.
“This alleged collusion resulted in the defendants secretly pocketing their lavish winnings and corrupting NBA games,” said FBI Assistant Director in Charge Christopher G. Raia.
Impact on sports betting partnerships
According to Wallach, the scandal could force professional sports leagues to reevaluate their relationships with gambling companies, according to industry experts.
“I think this is going to cause a reassessment by the professional sports leagues and the teams that maybe they need to take a step back and prioritize the integrity of the games over ancillary revenue streams,” Wallach said. “If not managed properly, [these partnerships] can destroy the fabric of the game and undermine and lessen public interest in the games.”
Legal sports betting has grown into a multi-billion-dollar industry since 2018, when the U.S. Supreme Court cleared the way for states to legalize sports wagering. Florida joined the market in 2021 through a partnership with the Seminole tribe to launch a betting app.