AGA exclusive: Alleged NBA gambling violators 'will be brought to justice'

How does the FBI's findings of a betting scandal within the NBA reflect the AGA's concerns regarding illegal gambling markets?

The announcement really demonstrates and reveals how predatory and pervasive the illegal market is today. In a recent report we shared back in August of this year, we sized the illegal market across skill games, offshore operators and sweepstakes casinos throughout the country. Americans annually spend $673bn with illegal operators and today's news just demonstrates there's still bad actors out there and organized crime remains prevalent in communities.

These actors are ruining people's lives, they're causing harm in communities, ensnaring innocent individuals and the legal gaming industry is here to pronounce the benefits of transparency and oversight. In the instance of some scandals you've seen with professional sports, by and large when some of this activity is taking place on legal sportsbooks, you're seeing legal operators step forward and collaborate with law enforcement. That's not something an offshore operator is going to do. They're not handing over betting patterns or betting data. So we applaud law enforcement today, but it shows there's a lot more work to do.

Can you speak to the AGA's thoughts on the investigation's wider implications, especially with the scandal showing relation to sports betting?

These instances are never good and they clearly, particularly with sports fans, make folks feel worried and even more concerned about the integrity of competition. The most important thing for us to be thinking about, and what these instances all have in common, is they're new and and we are experiencing a moment seven years into the legal sports betting regime where folks are learning that when they break rules, punishments are remitted.

I think Director Patel and Joseph Nocella, Jr. were very clear major sportsbooks are not at fault, and even described the sportsbooks as victims within the proceedings that were announced today.

We have to continue to commit ourselves to compliance and to the policies on hand so players, coaches and team employees know if you choose to break the law or violate your league's gambling policy, you will get caught. So the wider implications really point to enforcement and collaboration and truly remind all players in this ecosystem that if you violate these policies, you will be brought to justice. Period.

What type of response does the Association expect from bettors and casino players given a level of trust may have been broken due to the scandal?

That's our job here today, which is to make the betting community and our consumers know that first and foremost, the integrity of matches is truly the most sacred thing, and that's why we are in direct partnership with leagues.

That's why we go into partnerships with integrity monitors. These are commitments we make to regulators to share data, submit to oversight and fully comply with the integrity rules and regulations currently on the books. The more this activity is brought into light and taken out of the shadows, the more collaboration and transparency can be delivered to this activity. Then, integrity will not only just be upheld and maintained, but actually strengthened.

Are there ways the AGA could assist the FBI and other entities involved with the investigation?

While I'm not in a position to comment on any potential collaboration or involvement with any case, part of our job here in Washington is to communicate with federal stakeholders about the vast scope of the illegal market and to point law enforcement, particularly the Department of Justice and FBI, towards the continued work which is necessary to eliminate and eradicate the illegal market. We do that on a daily basis, from talking about compliance across all our members to the communication we have with federal agencies around KYC protocols as well.

Our communication and our advocacy before the Federal Government on this is robust. It's always an effort to remind them of the state and Tribal safeguards in place, and where and when it's appropriate for the federal government to focus its energy. The illegal market is absolutely one of those.

That's why our statement reflected applause and appreciation for federal law enforcement. As the special agent in charge of the New York Field Office said, it should speak to the gravity of this investigation that the Director actually went to New York to be there for this announcement, and it's great to see the attention and the priority this is being given by the FBI on the issue of illegal markets. We've been communicating about how pervasive and how predatory these actors are, and now the general public gets to see it.

Does the AGA believe this could be an isolated issue for the NBA, given the lack of controversies seen in leagues such as the NFL?

No, we don't. The illegal market does not have any preference for any type of league, and no league has a monopoly on illegal market activity, unfortunately. What really is important is for leagues, regulators, integrity monitors and then of course operators, to continue to work together in educating players, coaches and team employees on the importance of gambling policies and the restrictions built in.

This news that happens, a favorite player is suspended for a period of time or in certain instances is arrested or indicted on certain charges, these aren't positive developments and they continue to be concerning. But these punishments should continue to serve as deterrents, and we're seeing examples of where it's working.

For the last two years, the NFL has not announced any suspensions to any players, coaches or team employees for violations of the gambling policies. Recent reporting has actually shown the NFL's work with former players to talk to them about the dangers of illegal gambling, the potential consequences and the costs should they break the gambling policy that's in place and enshrined in the collective bargaining agreement between the Players Union and the league. We're seeing success there, but we have to continue to lean into the education components with players, and we need to continue to build this spirit of collaboration between operators, integrity monitors, regulators and leagues.