Michigan Strengthens Safeguards After Federal Sports Betting Scandal

The Michigan Gaming Control Board (MGCB) reiterated its dedication to safeguarding the integrity of sports betting after federal indictments tied several current and former NBA players and coaches to organized crime and unlawful gambling activities. The investigation uncovered alleged misuse of confidential player information, manipulation of prop bets, and involvement in a mob-backed poker cheating operation.

MGCB Executive Director Henry Williams stated that maintaining fair and transparent Michigan sports betting requires proactive regulation rather than reactive enforcement. The state's oversight model emphasizes openness, accountability, and consumer protection through multiple integrity measures.

All licensed sportsbooks in Michigan, most of which offer lucrative Michigan sportsbook promos, must use integrity monitoring systems to detect unusual betting activity. The MGCB also reviews and authorizes wagering markets, rejecting those that could be easily influenced, such as bets involving referee calls. 

In addition, the best sports betting sites must block insider betting by barring participation from athletes, coaches, officials, and anyone with access to confidential data. Under Michigan law, using nonpublic information or attempting to manipulate sporting outcomes for financial gain remains a criminal act.

Williams noted that the board is reviewing whether its current safeguards for player proposition bets, reportedly targeted in the federal case, are sufficient. He also cautioned bettors against using unlicensed gambling platforms, emphasizing that such sites offer no transparency or consumer protection. 

The MGCB intends to apply insights from the federal investigation to strengthen Michigan's regulatory standards and further protect lawful sports bettors.

New Jersey lawmakers push to ban micro-betting

As the nationwide concerns over betting integrity continue to grow, lawmakers overseeing New Jersey sports betting have renewed efforts to prohibit micro-betting within the state. 

Sen. Paul D. Moriarty introduced a bill last week to ban micro-wagers and penalize operators who continue offering them. His proposal aligns with Assemblyman Dan Hutchinson's Assembly Bill 5971, filed in July, though Moriarty's measure adds specific definitions and penalties.

Moriarty's bill, S4794, defines a micro-bet as a live wager placed during an ongoing event that concerns the next play or action rather than the outcome. This differs from traditional proposition wagers, such as an anytime touchdown scorer bet. 

Examples of micro-wagers include betting on whether the next pitch in baseball will be a strike or whether a football team's next play will be a pass or run.

Under S4794, any operator accepting or offering micro-bets would commit a disorderly persons offense and face fines ranging from $500 to $1,000 per violation. Both Sen. Moriarty and Hutchinson argue that eliminating micro-betting would protect vulnerable gamblers by curbing rapid, repetitive wagering behavior.

Hutchinson, a bankruptcy attorney, described cases where micro-betting contributed to financial distress for clients who lost control over their spending, as it enables players to place bets quickly without consideration. Both lawmakers maintain that stricter regulation will ensure New Jersey sports betting remains safe and responsible.