In the wake of numerous sports betting scandals that erupted in 2025, there is a growing push for regulatory changes in the United States that may tighten restrictions on player prop bets. Major League Baseball has led the charge by coordinating with sportsbook operators and state regulators to limit microbets related to specific plays, such as balls and strikes. Meanwhile, the NFL and NBA have sent memos outlining detailed protocols aimed at preventing the risk of manipulated prop bets.
On the federal front, U.S. Representative Paul Tonko of New York has called for enhanced integrity within the multi-billion dollar sports betting sector. He reached out to seven professional sports leagues, urging them to back federal regulations that would provide the necessary safeguards against individuals seeking to exploit the system.
Concurrently, the NCAA grapples with a significant scandal in college basketball, specifically a point-shaving incident that could be historic. NCAA President Charlie Baker, who previously served as the governor of Massachusetts, is advocating for a nationwide ban on college player prop bets. Although many expect new restrictions to emerge, it remains unclear whether sweeping bans will be implemented or if states will merely limit certain props within select jurisdictions.
During a recent gaming legislative conference held in Puerto Rico, conversations dominated by prediction market activity still set aside significant time to address the consequences of these gambling scandals. One session at the National Council of Legislators from Gaming States' winter meeting focused on the diverse challenges posed by Name, Image, and Likeness (NIL) rights for college athletes, alongside the implications for sports betting integrity.
Steve Lautz, who oversees compliance at LSU, pointed out that Louisiana prohibits college player prop bets, yet over 20 states with legal sports betting still permit these kinds of wagers. Currently, at least 17 states have restrictions on college prop bets, while several others impose localized limits based on state lines. Lautz expressed hope that more states would follow suit with additional restrictions in 2026.
Information gathered from nearly a dozen legislators, regulators, and lobbyists during the conference illustrated a general consensus that props should be banned, as noted by Frank Ciccone III, the majority leader of the Rhode Island Senate. However, attendees recognized that expecting every state to adopt a ban was impractical. Mike Finn, a Massachusetts state representative, proposed that achieving a threshold of around 50% support could create a shift in perspective among reluctant states due to growing backing.
Proposals are also under consideration for other betting types following indictments last fall of 34 individuals by federal prosecutors in Brooklyn for alleged improper conduct involving both sports betting and poker. This included allegations against two Cleveland Guardians pitchers for manipulating pitch outcomes to benefit prop bets.
In response, the NFL issued a memo to all 32 teams outlining that they had engaged with state legislators to discuss limiting prop bets. The memo specified several props the league sees as having a detrimental impact, such as those involving player injuries or officiating decisions. Shortly after, the NBA proposed modifications to its gambling policies, suggesting limits on specific types of bets and reductions on which players could be placed in betting scenarios.
Christopher Hebert, the chairman of the Louisiana Gaming Control Board, emphasized the importance of regulatory bodies considering such concerns, although he remains skeptical that a ban on certain props alone would resolve underlying issues. Similarly, Michigan state Senator Michael Webber anticipated some compromises between states and operators, warning that while stricter regulations might aim to restore integrity, they could inadvertently affect tax revenues.
On the federal level, discussions emerged in November between representatives from the U.S. House Energy Committee and NBA staff, although major league commissioners were noticeably absent. Tonko has been vocal about integrity in sports betting since a wave of arrests in October but has yet to advocate for a blanket national ban on props. His proposed legislation, the SAFE Bet Act, seeks to establish baseline federal standards for marketing, affordability, and the use of artificial intelligence within the sports betting sector. Tonko's office has also reached out to multiple sports leagues regarding integrity safeguards.
"The choice before you is now explicit," he wrote to the leagues. "Either engage directly with Congress to establish mandatory federal guardrails that restore integrity and protect the public or stand in opposition and accept responsibility when the next scandal breaks and more families and lives are destroyed."
