Delaware Gov. John Carney made the first legal single-game sports bet outside of Nevada—a $10 wager on a Phillies game—just one month after a 2018 Supreme Court decision opened the door for states to legalize sports betting. The rush to capitalize on potential tax revenue has, in hindsight, revealed a host of unintended consequences, and a growing sense that the game itself is being compromised.
The High Cost of the Sports Betting Gold Rush
A wave of scandals and rising addiction rates are casting a shadow over the rapidly expanding world of legal sports wagering.
- The Supreme Court’s 2018 ruling unleashed a scramble among states to legalize sports betting, often prioritizing speed over regulation.
- A surge in gambling addiction, particularly with the rise of mobile apps, is raising public health concerns.
- High-profile scandals involving athletes and game manipulation are eroding trust in the integrity of sporting events.
- The increasing entanglement of sports media with gambling companies is blurring the lines between journalism and promotion.
Many states prioritized getting sportsbooks operational in time for major events like the Super Bowl and March Madness, rather than establishing robust regulatory frameworks—a dynamic detailed in Danny Funt’s book Everybody Loses: The Tumultuous Rise of American Sports Gambling. Some lawmakers even passed legislation authorizing sports gambling before the Supreme Court ruled on Murphy v. NCAA, anticipating a favorable outcome.
Eight years later, the consequences are becoming stark. Sports media outlets have become deeply intertwined with gambling companies, incentivized to convert fans into bettors. Athletes who underperform relative to betting expectations are increasingly subjected to abuse, including racist threats and death threats. And, crucially, gambling addiction is on the rise.
The proliferation of mobile betting apps, offering instant access anytime, anywhere, has exacerbated the problem. But the issues extend beyond individual struggles with addiction. A series of recent scandals demonstrate how legalization has begun to corrupt the games themselves.
Scandals Rock the NBA and MLB
In 2024, the NBA issued a lifetime ban to Toronto Raptors forward Jontay Porter for his involvement in a scheme where he intentionally limited his playing time to influence “under” bets on his performance. Miami Heat guard Terry Rozier was implicated in a similar arrangement last year. The problems weren’t confined to basketball; two Cleveland Guardians pitchers were charged with manipulating ball-or-strike calls in exchange for cash bribes.
Just this month, federal prosecutors named 39 players across 17 teams allegedly involved in a point-shaving ring that fixed men’s college basketball games during the 2023-24 and 2024-25 seasons. The indictment alleges that players received bribes in the low five figures to intentionally underperform, allowing bettors to profit from pre-arranged outcomes.
While leagues and sportsbooks often portray these incidents as isolated cases, and emphasize punishments for those involved, the very knowledge of such corruption casts a pall over the entire enterprise. A losing bettor is left to wonder if they were cheated, not by luck, but by deliberate manipulation.
The Erosion of Trust
Leagues and sportsbooks routinely emphasize the rarity of corruption and highlight the penalties imposed on those caught. However, the increasing frequency of scandals raises a fundamental question: can fans truly trust the integrity of the games they are betting on? The potential for undetected manipulation creates a climate of suspicion that threatens the long-term viability of legal sports wagering.
