The year 2025 has already begun to show troubling signs for the sports betting industry, just days after the New Year.
On January 12, federal agents arrested Shane Hennen at Harry Reid International Airport in Las Vegas while he was attempting to board a one-way flight to Colombia. Prosecutors allege that Hennen was attempting to flee just three days before the US Attorney’s Office for the Eastern District of New York set a plea deadline. Later in the month, reports emerged that federal prosecutors were investigating Miami Heat guard Terry Rozier for a series of suspicious bets placed almost two years prior.
By October, the investigations merged as both Rozier and Hennen were indicted among nearly three dozen defendants in a vast operation. Joseph Nocella Jr., acting US Attorney for the Eastern District of New York, described these arrests as the most significant dismantling of a gambling enterprise since the repeal of PASPA in 2018.
The cases have raised concerns over whether the regulated US sports betting market is capable of identifying integrity issues that were previously hidden in the unregulated black market. As scandals unfolded throughout 2025, the complexities surrounding the integrity of sports betting came to the forefront.
In a dramatic case involving former Shohei Ohtani interpreter Ippei Mizuhara, he was sentenced to 57 months in prison for embezzling nearly $17 million from the MLB star. This money was reportedly used to cover a portion of his sports betting debts to illegal bookmaker Matt Bowyer.
Mizuhara began his sentence in June, followed by Bowyer’s sentencing, which the same judge reduced to only 12 months due to an eight-level downward departure. Bowyer’s operation took in nearly 19,000 bets from Mizuhara, translating to a staggering total of $325 million. At the time of his arrest, Mizuhara still owed Bowyer about $24 million, an amount likely deemed unrecoverable.
The scandal also brought scrutiny to several Las Vegas Strip casinos due to their weak anti-money laundering practices, which facilitated the laundering of millions by Bowyer and other bookies.
Over a span of 10 weeks in the spring, the Nevada Gaming Commission hit three prominent casinos—MGM Grand, Wynn Las Vegas, and RWLV—with hefty fines. Bowyer frequented all three but spent a significant amount of time at RWLV post-pandemic, even enjoying a private flight to a Dallas Cowboys game, before the FBI raided his residence.
Despite his lack of legitimate income, Bowyer managed to gamble immense sums at RWLV, prompting calls from industry experts, including former California gambling regulator Richard Schuetz, for severe repercussions against the casino. The commission ultimately imposed a $10.5 million fine on RWLV, the second-largest ever in the state. MGM agreed to an $8.5 million settlement due to their own internal violations, while Wynn received a $5.5 million fine.
Shortly after Bowyer began his prison sentence in October, regulators approved a $7.8 million fine against Caesars Entertainment for similar AML failures.
The repeated scandals prompted widespread calls for regulatory reform, highlighted by former lieutenant governor Brian Krolicki’s assertion that these issues should serve as a decisive signal to enforce compliance throughout the Strip.
In the NBA, the charges against Rozier were among the three arrests on October 23. While Rozier remains a player on an active roster, the highest-profile figure arrested was Portland Trail Blazers coach Chauncey Billups, who faces accusations of being paid to participate in a mob-connected rigged poker game. He has pleaded not guilty and is linked to alleged information leaks concerning game outcomes.
Amidst this turmoil, two pitchers from the Cleveland Guardians were also indicted for allegedly manipulating pitches in a scheme involving microbets. The situation pressured MLB to establish a $200 limit on microbets soon after news of the charges broke.
In total, at least six athletes involved in these investigations have appeared in court over the last month.
A debate has emerged about whether legal sports betting has compromised the integrity of sports. Chris Christie, former governor of New Jersey, insists that the regulated environment is functioning well, while US Rep. Paul Tonko (D-NY) contends that the current state-run regulatory approach is insufficient and may jeopardize the integrity of sports. In an October letter to the NBA, Tonko criticized the concept of “voluntary self-policing” as ineffective, emphasizing the flaws of a solely state-managed regulatory system.
The ongoing dialogue about sports integrity and the evolution of legal betting practices is expected to continue into 2026 and beyond.
