After NBA Debacle, Michigan Introduces Sports Betting Safeguards

The Michigan Gaming Control Board (MGCB) has introduced new safeguards to protect sports gamblers in the wake of what could be the largest scandal to involve a major gambling league – the NBA.

Michigan Gambling Regulator Wants More Done to Protect Sports Bettors from NBA-style Fiascos

Following the past couple of days, the MGCB has swiftly come up with a new set of rules that are designed to protect players, with executive director Henry Williams stating:

“The integrity of sports betting in Michigan depends on more than enforcement — it requires proactive safeguards designed to detect and deter misconduct before it occurs. We’ve built a regulatory structure that prioritizes transparency, accountability, and consumer protection.”

Williams was referring to the NBA scandal that embroiled current and former players, as well as at least one coach. Investigators allege that an illegal gambling ring (besides a rigged high-stakes poker game) was set up to share insider info and make wagers win.

To ensure that local operators offer a fair and transparent betting environment for sports gamblers, the MGCB has come up with a four-point plan. The MGCB now expects operators to carry out integrity monitoring and identify and report unusual or suspicious betting patterns.

There is also a new review and approval of events and wager-type processes, with the MGCB seeking to get rid of “certain wager types that are objectionable or easily manipulated.” The onus will also be on operators when looking to act in the case of insider training.

It will be on sportsbooks to identify when a person associated with an event or league may be abusing their position to place an illegal bet. Operators must also have comprehensive internal controls designed to help stop and detect fraud at any level.

MGCB Determined to Keep Fraud and Illegal Gambling at Bay

Williams has openly spoken about specific types of wagers, naming prop bets. “Certain types of prop bets present a higher risk of manipulation, particularly when tied to insider knowledge or player behavior. As regulators, we must assess whether current safeguards are sufficient or if additional restrictions are necessary,” he added.  

Interestingly, the NBA also confirmed that it is taking measures when it comes to prop bets. Williams said that illegal gambling undermined trust and exposed Michigan residents to various financial and personal risks.

Because of this, the MGCB will now look to strengthen all possible safeguards and ensure that such instances of foul play do not happen on the regulator’s watch.