A series of prominent sports betting scandals has led some members of Congress to call for stricter regulations, but insiders claim that real national reform in the U.S. is unlikely. Lawmakers are using incidents involving figures from Major League Baseball (MLB) and the National Basketball Association (NBA) to highlight what they see as significant gaps in consumer protections and game integrity resulting from state-by-state oversight.
Industry representatives argue that regulated sportsbooks have played a crucial role in exposing misconduct, and they cite political gridlock as a major barrier to establishing a cohesive national framework for sports betting. "You have a situation where there is interest in the topic and will remain a lot of interest," said Brandt Iden, vice president of government affairs at Fanatics Betting & Gaming and a former Michigan state representative. "Congress will do its job and there will be a committee hearing and air things out. What I hope is this is not a situation where it’s finger-pointing [and is instead] more a collaborative discussion on how it works. The reality is these things are uncovered because of the regulated market, and together it becomes an education process."
The Senate Judiciary Committee previously held a hearing on sports betting in December 2024 that lasted around two hours but devolved into partisan arguments. At that time, Senator Dick Durbin indicated this was only the start of discussions, although no further hearings have been convened. In light of new scandals, legislators are now seeking information from the leagues. Notably, the U.S. Senate Committee on Commerce, Science and Transportation sent a letter to MLB Commissioner Rob Manfred with six questions, setting a December 5 deadline for his response. The letter emphasizes the league’s responsibility to protect the integrity of the game: "MLB has every interest in ensuring baseball is free from influence and manipulation. But in light of these recent developments, MLB must clearly demonstrate how it is meeting its responsibility to safeguard America’s pastime."
The MLB plans to cooperate with inquiries related to Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz, who are being accused of manipulating pitches for sports betting profits. The Commerce Committee is also engaged with NBA Commissioner Adam Silver regarding the league’s operations, with NBA staff reportedly visiting Capitol Hill this month. Additionally, the House Committee on Energy and Commerce is investigating the NCAA, which is grappling with its own set of sports betting scandals.
The recent scandals have prompted lawmakers and the public to scrutinize the integrity of sports and question whether the surge in legalized sports betting is to blame. Durbin has specifically mentioned concerns over the manipulation of prop bets. In a response to MLB's concerns, major sportsbooks have agreed to a cap of $200 on pitch-level microbets. Meanwhile, some state regulatory bodies, including the Michigan Gaming Control Board, are reevaluating what types of bets should be allowed. Executive Director Henry Williams remarked that the integrity of the industry necessitates proactive measures to deter misconduct while asserting that the existing regulatory framework prioritizes transparency and consumer protection.
Chris Christie, former governor of New Jersey and lead plaintiff in the 2018 PASPA case, argued in a New York Times essay that legalized sports betting enhances integrity. Iden expressed optimism regarding discussions with lawmakers, asserting that it might clarify that the rise in legal betting does not correlate directly with illegal activities. "Too many lawmakers don’t understand how it works. It’s not a negative, just a fact," Iden stated, indicating that sports betting has not been a priority topic for national lawmakers. He anticipates that committees will hold hearings where league representatives will testify about their operations. "It’s a regulated system that works and it will likely happen again. If athletes continue to commit crimes, they’ll be uncovered. [Legal] sports betting is something that didn’t exist, and now it exists, and we’re uncovering nefarious activity that already existed."
Despite numerous gambling-related bills introduced in recent years, Congress has shown little enthusiasm for advancing any of them, including the SAFE Bet Act, which was introduced last year by Democrats Paul Tonko and Richard Blumenthal. Tonko, in a recent statement, emphasized the need for federal action: "In order to truly address this rising crisis, the federal government must act to establish minimum safety standards. I’ll continue to highlight the importance of this issue to my colleagues and push for this common-sense legislation."
State lawmakers and regulators find themselves better positioned to modify existing laws. Ohio Governor Mike DeWine, who implemented sports betting in the state, recently expressed regret over that decision. He went on to say that the recent limitations on MLB microbets were insufficient. While he acknowledged there is currently no political support for repealing sports betting in Ohio, he would sign such a bill if it reached his desk. Similar measures seeking to repeal sports betting have been proposed in Maryland and Vermont but have not progressed.
The general sentiment among industry stakeholders is that momentum for nationwide action is halted by the political climate. Commenting on this, an industry source noted, "We have to put into perspective that we have a Congress that is basically not functional, and it’s not even functional when they have a government that’s funded. There will be some congressional discussions. What that leads to in terms of federal solution, I think it’s unlikely in the near term."
