If we don't do it, they still will.
So suggested the chief executive officer of a major online sportsbook operator on Wednesday when asked about potentially problematic player props and parlays offered by bookmakers.
“If we are so naive to believe that the ‘Under’ is not available in the illegal market, then we are misguided,” BetMGM CEO Adam Greenblatt said in response to a question from CNBC’s Contessa Brewer at the SBC Summit North America conference in New Jersey.
Despite the best efforts of happy New York Rangers fans clogging traffic last night, I have made it to #sbcsummitnorthamerica in New Jersey. First panel of the day stars BetMGM CEO Adam Greenblatt. pic.twitter.com/YbsbmmcGkK
— Geoff Zochodne (@GeoffZochodne) May 8, 2024
Greenblatt's answer referred to the type of prop betting markets offered involving players like Jontay Porter, who was recently banned from the NBA after an investigation found he gambled on the league’s games, among other things.
The NBA’s discipline of Porter followed some unusual wagering activity. That included an $80,000 same-game parlay placed on Porter to go “Under” totals for a March game he only played three minutes in after leaving due to a purported illness, the NBA said.
NBA commissioner Adam Silver added in a statement accompanying the announcement of the ban that the matter "raises important issues" about the regulations currently in place, like those for the types of bets offered on their games and players.
ESPN subsequently reported the NBA has been talking to its partner sportsbooks about possible changes to what betting markets are available, such as possibly prohibiting wagering on the "Under" for a player prop.
Silver spoke on the subject again on Monday, saying the league only has so much control over betting markets.
“Certainly, prop bets, depending on how precise they are, lend themselves to more shenanigans than other kinds of bets,” the NBA commissioner added. “Now, some of that can be captured through various monitoring, but we also recognize that a large amount of the handle -- I'm not sure the precise percentage -- but my hunch is there's still far more illegal [betting] than legal."
The following has been released by the NBA. pic.twitter.com/h2TIkaE7xs
— NBA Communications (@NBAPR) April 17, 2024
Like Silver, Greenblatt sees regulation as crucial. That was evident when the BetMGM CEO was asked if he was comfortable with offering a wide variety of props and parlays even with the integrity concerns they may cause.
“I’m comfortable that the best way to make transparent all of the activity in and around the game, which frankly is the only way to ensure integrity long-term, is best achieved by regulated sports betting, strong partnership between ourselves, teams, leagues, lawmakers, regulators,” Greenblatt said on Wednesday.
Rather than a crackdown on what legal operators can offer, Greenblatt suggested the powers that be turn their attention to illegal and offshore bookmakers.
“I think what a legalized market does is brings a degree of transparency to all wagers,” he said. “But legalizing a state is part of the overall picture. We need to legalize and we also need to take steps against the illegal market to make flow of funds more challenging, to make access to media and advertising more challenging, unless you’re part of the club, if you like, the good guys and ladies, of course. But the legal market is the only way to achieve the policy objectives, to protect players, to make sure that the games are free and fair and not challenged by concerns of integrity. And, of course, tax.”
Damned if you do ...
The comments from the head of one of the bigger online sports betting operators in the U.S. highlight the difficulties that have arisen around ensuring the integrity of games — and also ensuring bettors and fans feel confident about that integrity — in the age of widespread legal event wagering.
One of those challenges is ensuring players are not wagering on the games, or passing inside information along to others, even as there is increased opportunity to access legal betting apps and sites. Partnerships between leagues and sportsbooks can further complicate the situation and can be painted in an unflattering light when controversies arise.
There has also been an evolution in the betting markets offered by operators, which can extend to a role player like Porter. Those props can be especially important to bookmakers (such as BetMGM, which is trying to regain ground on the DraftKings-FanDuel duopoly with the help of a better sportsbook) who want bettors placing same-game parlays. Those are more likely to lose, and especially so when more and more legs are added to them.
Damned if you don't?
While those markets could cause problems, as they did with Porter, removing them may do the same.
Bettors who were wagering on lesser-known players may still seek out those props with offshore and illegal bookmakers. They may already be doing it, too, with no insight for leagues, operators, and regulators into that illicit activity. It’s unlikely an illegal operator would have provided the same sort of alerts that went out around the Porter-related props.
That is the bind that the leagues, sportsbook operators, and regulators are in, as removing potentially problematic betting markets may stave off future scandals involving legal entities, but there is no guarantee they end if the illegal market is still there.
“This is such an important topic,” Greenblatt said on Wednesday. “And I think the steps that we as an industry, our regulators, our lawmakers and our league partners take on this will determine whether we will be successful in looking after our industry and looking after our players.”
