Will MLB Betting Scandals Lead to Federal Action?| OSB

While in attendance for the 2024 MLB All-Star Game hosted by the Texas Rangers, Major League Baseball commissioner Rob Manfred commented on the recent betting scandals that have been brought to light. And his thoughts are bound to surprise at least a handful of people.

So many were curious about what the MLB commissioner would say during his time in the Lone Star State. Naturally, they wondered where he landed on the future of sports betting in Texas. Despite clear interest in its legalization among voters, the issue has yet to gain serious traction in the Senate. But with the next round of legislative meetings scheduled for 2025 (they take place every other year in the Lone Star State), there’s a chance the status quo could change.

As it turns out, though, a couple of other topics grabbed headlines in front of Texas sports betting. MLB’s leading man was asked about everything from uniforms and the Minnesota Twins’ broadcast problems to the absence of Pride Night in Texas and a previous mini wave of baseball betting scandals.

The latter subject struck the loudest note. We probably should have expected as much. Remember, we’re just months removed from the MLB betting scandal involving Ippei Mizuhara, the former interpreter for Los Angeles Dodgers megastar Shohei Ohtani, who ironically enough used to play for the Texas Rangers. The fallout from that debacle is still generating plenty of discussion. Ohtani is that big of a name.

But it’s also because other MLB betting allegations have bubbled to the surface. That, in turn, has led many to ask whether we should expect intervention from the federal government. And as someone who is obviously invested in what happens with betting on MLB, Manfred was always going to be put on the spot.

Are MLB Betting Scandals Becoming a More Common Problem?

Before delving into Manfred’s comments, let’s first understand why the subject was broached. The answer lies in the question above.

Anecdotally, it feels like MLB betting issues are growing more prominent. The scandal involving Ohtani’s interpreter is still a big deal. On top of that, San Diego Padres infielder Tucupita Marcano received a lifetime ban from the MLB this past June for violating their gambling policy. Four other players were also suspended as part of the ordeal.

So, are MLB betting scandals becoming a bigger problem? Well, yes. But that’s akin to saying they exist at all.

As sordid as it sounds, this was always going to happen. Allowing top online sportsbooks in the United States to operate in roughly half of the country’s markets has afforded everyone unprecedented access to gambling. And because players, managers, team employees, etc. are in unique positions to provide information, if not influence competitive outcomes, the increased legalization of sports betting was always going to result in more scandals.

This isn’t unique to MLB, either. Sports betting scandals have most notably hit the NFL and NBA in the past calendar year, as well.

Granted, this isn’t a factoid that diminishes the significance of these issues. If anything, the increased frequency with which violations are being reported suggests that there needs to be some level of intervention. Could that entail getting the federal government involved?

Rob Manfred Doesn’t Think Betting Scandals will Lead to Federal Intervention

The MLB commissioner was asked this very question—or some version of it—while in Texas for the All-Star Game. The gist of his answer? Federal intervention is unlikely, and maybe even unnecessary. Here is Manfred’s full response, via the Dallas Morning News:

“It’s important to say that our No. 1 issue, the single thing on which there is no compromise, is the integrity of the game on the field. We went to the Supreme Court trying to stop sports betting in New Jersey. Once you had the Supreme Court decision, I don’t see it going backwards in any way. I really don’t,” Manfred told the Dallas Morning News. “I think there is a lot of emphasis on states’ rights right now and the idea the federal government would step in and deprive states of an important source of revenue, I just politically don’t see that happening.”

The “Supreme Court decision” to which Manfred refers is the overturning of the Professional and Amateur Sports Protection Act. The ruling came down in 2018. As a result, the power to legalize sports betting now lies with each individual state. Having the federal government step in to address scandals and other sports betting issues, in the MLB and elsewhere, is counterintuitive to that ruling.

Is There Any Chance Manfred is Wrong About Federal Intervention?

Yes, there is always a chance that Manfred is wrong. The federal government could decide to step in essentially at any moment. However, they don’t appear on the precipice of doing so.

Consider what just happened with sports betting in Florida. The United States Supreme Court elected not to hear the case on the Seminole tribe’s sports betting compact brought to them by West Flagler Associates. In doing so, they essentially validated the exclusive agreement between Florida and the Seminoles. However, this marks yet another instance of the federal government staying away from sports betting issues.

Similar dynamics are at play in other areas. Problem gambling, sports betting advertisements and online sports betting promotions have become a key focus for many states over the past year. You don’t hear about any of them seeking federal involvement.

If anything new legislation is going to come out of MLB betting scandals or controversies in other leagues, it will almost assuredly happen at the state level. And frankly, this type of transition is inevitable. States with legal sports betting know this is part of the baggage that comes with the industry. As time goes on, they will likely get proactive rather than reactive.

What that entails is anyone’s guess. But we’d count on it not including any help or mandates from the federal government.

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