NBA, Sportsbooks Reassess Prop Bets After Player Gambling Scandals

Following a series of high-profile betting scandals involving NBA players, the league and its sportsbook partners are reassessing which types of wagers may be susceptible to manipulation. 

According to sources cited by ESPN, the NBA has instructed its betting partners to remove wagers tied to individual player mistakes, including missed free throws, fouls, and turnovers. Both FanDuel and DraftKings confirmed compliance with the league's request, with DraftKings noting that it previously offered live wagers on free throws but has now discontinued them.

NBA League officials are also reviewing appropriate betting limits on player props, which are generally lower than spreads or totals, due to heightened integrity concerns. The review comes as federal prosecutors pursue cases against players accused of exploiting insider information. 

Authorities allege that NBA guard Terry Rozier conspired with gamblers by disclosing his plan to leave a game early, prompting large bets on the under for his statistical props.

FanDuel and DraftKings said their monitoring systems helped flag suspicious betting activity in the case. They have called the incident evidence that regulated markets can identify potential manipulation. 

The NBA also prohibited sportsbooks from offering wagers on players under short-term contracts following the lifetime ban of former Toronto Raptors center Jontay Porter for intentionally underperforming to profit bettors.

Industry representatives argue that excessive regulations could drive bettors toward unregulated or offshore sportsbooks that lack oversight and fail to provide consumer protections.

Nevada regulators highlight oversight strength 

The recent wave of indictments has renewed focus on the strength of Nevada sports betting regulation. Former Nevada Gaming Commission Chairman Tony Alamo said the absence of licensed casinos from the federal Mafia gambling case demonstrates that state oversight systems are functioning effectively. 

However, Alamo also criticized federal authorities, questioning why long-standing criminal networks continue to surface in sports-related gambling cases.

Investigators have linked Rozier's case to another scheme, one involving rigged poker games featuring professional athletes. Federal agents allege that organized crime groups exploited access to athletes, using inside information or deliberate underperformance to profit from prop bets.

Former Nevada Gaming Control Board Chairwoman Becky Harris said current state laws already classify intentional underperformance as fraud and noted that Regulation 22 governs sportsbook operations to prevent such manipulation. Harris emphasized the importance of educating players, coaches, and staff about the risks of gambling and their integrity obligations.

Some industry insiders believe the latest scandals could prompt wider scrutiny across US jurisdictions. Joe Asher, a Nevada sportsbook operator, said a nationwide ban on player props would be misguided, as it could push bettors toward unregulated markets. 

Gaming consultant Josh Swissman added that regulators might now enhance oversight of proposition betting, noting that historical precedents, such as the 1994 Arizona State point-shaving case, show how irregular wagering patterns often expose corruption within sports betting markets.

In the wake of the NBA betting scandal, the league and its partner sportsbooks continue to review what types of bets are most vulnerable to manipulation and how much bettors should be allowed to wager on such bets.