Congress wants to know if NBA is rethinking sportsbook deals

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Members of Congress expect NBA Commissioner Adam Silver to explain exactly what he intends to do in the wake of the latest gambling commotion to envelop the league.

In a letter dated Oct. 24, House Committee on Energy and Commerce members asked Silver to submit a detailed briefing by Oct. 31 after the FBI announced the indictments of Miami Heat guard Terry Rozier, Portland Trail Blazers coach Chauncey Billups and ex-player Damon Jones as a result of two separate federal gambling investigations.

In the sports betting case, authorities allege that a group of co-conspirators placed bets on numerous NBA games between December 2022 and March 2024 using non-public information. Rozier is accused of sharing such info and manipulating his own performances, while Jones allegedly sold inside information about player availability.

House committee has requests for NBA

The Energy and Commerce committee requested that Silver:

  • Provide details of NBA staff’s alleged involvement in fraudulent or illegal betting practices related to the new indictments, as well as past incidents such as last year’s Jontay Porter case
  • Explain the actions the NBA intends to take to limit the disclosure of non-public information for illegal purposes
  • Confirm whether the NBA’s Code of Conduct effectively prohibits illegal activity such as sharing insider information for the purposes of betting
  • Offer an explanation of the gaps, if any, in existing regulations that allow illegal betting schemes to occur
  • Confirm whether the NBA is reassessing its partnerships with sports betting operators

The NBA bans its employees from betting on the league and has restrictions in place regarding insider information. As the committee members noted in their letter, the league also revised its policies in the wake of Porter’s lifetime ban and criminal charges to prohibit players from using phones or similar devices from tipoff until the conclusion of games.

On Oct. 24, the same day that the committee sent its letter to Silver, the commissioner gave his first public comments in response to the furor. He told NBA on Prime during the New York Knicks’ win over the Boston Celtics that he was “deeply disturbed” by the allegations.

Sportsbooks partnerships under scrutiny

The committee members asked Silver to divulge whether or not the NBA is reevaluating its partnerships with sports betting companies in light of recent developments.

DraftKings and FanDuel have been the NBA’s official gambling partners since 2021, while several other sportsbooks including BetMGM, Fanatics and ESPN Bet are authorized gaming operators for the league. Some NBA teams also have their own deals with operators.

The unsealed indictment pertaining to the sports betting investigation noted that investigators believe the co-conspirators used four regulated sportsbooks, including FanDuel and Draftkings.

U.S. Attorney for the Eastern District of New York Joseph Nocella Jr. said at a press conference detailing the investigation on Oct. 23 that the sportsbooks were “victims” in the scheme. DraftKings, FanDuel and the American Gaming Association each released statements emphasizing the betting and integrity monitoring work that legal sportsbooks undertake in partnership with leagues and data firms.

The NBA said in a memo to teams on Oct. 27 that while monitoring helped detect the alleged betting fraud, it believes more can be done to protect the league’s integrity, such as better utilizing AI.

NBA says props require further scrutiny

The committee members’ letter also referenced Silver’s comments on The Pat McAfee Show on Oct. 21, two days before the FBI’s press conference, when Silver said that the league had asked some of its sportsbook partners to “pull back” on the range of prop bets that they offer on NBA games.

This time last year, post-Porter scandal, several sportsbooks stopped offering props on the performances of players such as Porter on two-way contracts after discussions with the NBA.

Silver said during that appearance that he felt certain player props were “too easy to manipulate.” The NBA’s new memo to teams said props should be further spotlighted.

“In particular, proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny,” wrote the league.

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