Virginia Considering Ban on Certain Sports Betting Markets

The fallout from the NBA’s massive gambling scandal has spread to Virginia sports betting market.

The Virginia Lottery Board (VLB) met this week to discuss the industry-shaking news. Members heard details of the scandal, which involved several famous players making money by sharing inside information. 

They also received an update from executive director Khalid Jones on proposals to help better protect bettors from this kind of unfair play.

“When we feel like we have good information on it, and that's going to happen quickly, this research, we will move to … potentially restrict certain markets from a sports betting standpoint, particularly with respect to the NBA,” Jones told VLB board members during the meeting.

While the NBA scandal did not involve the state, residents could have wagered on the events that the recently arrested stars are accused of tampering with. There is also a growing concern over protecting the integrity of pro and college sports in the US, leading several states to consider similar bans. 

While there wasn’t an agreement on which betting markets to target, it seems likely that micro-betting and player prop bets will be at the top of the list. These bets are the easiest for athletes or coaches to influence, making them the most common choice.

Would Bans Be Effective?

Several states have seen lawmakers propose bans on player prop bets and micro-betting. The belief is that eliminating these markets will end the ability for one player to alter the outcome of a wager. While this seems like the most obvious solution, there is reason to believe it may not be enough.

One reason to oppose bans is the prevalence of illegal operators. Offshore sportsbooks still operate across the US, and illegal bookmakers continue to thrive. The recent NBA scandal, like many before it, involved regulated online sportsbooks. These operators have made heavy investments in technology to detect suspicious betting patterns and share that data with regulators.

Sports prediction markets continue to grow in popularity. Several new operators are expected to enter the industry over the next year, including sports betting giants FanDuel and DraftKings. Unlike sportsbooks, these platforms are not considered to be gambling. This means they can continue to offer betting markets that states have banned, giving athletes and coaches another option for spot-fixing.