Sports Leagues Face Difficult Choice on Sports Betting

The biggest sports leagues in the US are about to face a critical decision on sports betting.

The NBA’s latest scandal has drawn increased attention from Congress, which is demanding answers from commissioner Adam Silver and officials from other leagues. Lawmakers have also reached out to leaders of different leagues in hopes of spurring action to prevent future scandals. 

The increased scrutiny has also led to questions about the growing relationship between leagues and the sports betting industry. Now, it seems they will need to decide how to treat those relationships going forward.

Tonko Asks for Support of SAFE Bet Act

US Representative Paul Tonko believes he has the solution to growing concerns over sports betting. He has been pushing his SAFE Bet Act for well over a year now, which would create strict federal guidelines around the industry. The bill has been viewed as heavy-handed in the past, but Tonko hopes support from sports leagues can change that.

The lawmaker sent a letter to officials from the country’s top sports leagues earlier this week. It asked them to help support the controversial bill, which he believes will help prevent scandals like the one recently discovered in the NBA. If leagues refuse to do so, Tonko warned that they will bear full responsibility for future scandals.

Sports Betting Bringing in Big Money for Leagues

While the leagues are clearly concerned about the growing number of sports betting scandals involving players and staff, the solution may not be so easy.

Since PASPA was overturned almost eight years ago, sports leagues and teams have pursued partnerships with sportsbooks. Many now have “official betting partners” who pay big money for the right to advertise in-game and on TV. 

That kind of extra revenue remains tempting to accept, as the Oklahoma City Thunder just proved. Just days after the FBI arrests of NBA coaches and players, the team shared its desire to enter the sports betting industry. They proposed a legal market for the state that would give them a share of the overall handle, as well as at least one mobile license. 

Leagues Must Choose

As Tonko mentioned in his letter, the country’s sports leagues now face a crucial decision. 

One option is to continue their foray into sports betting while seeking other solutions to protect the integrity of their sport. The extra revenue from sportsbooks could help fund initiatives to achieve that, but there is no guarantee they will work. If another scandal occurs and the league chooses this route, it could lead to a significant drop in fan support and more severe penalties from Congress. 

The other option is backing the SAFE Bet Act, or other legislation that would crack down on the industry. This option likely results in sportsbook partnerships ending, stripping leagues of the extra revenue they generate. While this will lose money, it would protect the integrity of leagues and teams, and help avoid future punishment from angry lawmakers.