Gambling Corruption Threatens $10B Sports Revenue

A new proposal calls for independent oversight in sports to tackle illegal gambling, spotlighting vulnerabilities in the current system.

Story Highlights

Former DOJ official proposes independent watchdog for sports integrity.
Proposal follows multiple cases of game-fixing and player misconduct.
Major sports leagues yet to adopt the inspector general model.
Proposal aims to address gaps in federal enforcement bandwidth.

The Call for Independent Oversight

Carolyn Pokorny, a former federal prosecutor, has proposed that major sports leagues establish an independent “inspector general for sports integrity” to combat illegal gambling schemes and player misconduct. This initiative emerged following several high-profile federal prosecutions involving NCAA basketball players, MLB pitchers, and NBA players allegedly conspiring with gamblers to manipulate games and outcomes. The proposal highlights a significant governance gap that threatens the integrity of professional sports.

The proposal suggests a systemic reform rather than isolated responses to individual criminal cases. Pokorny’s vision involves a collaborative, industry-wide solution modeled after established regulatory frameworks in other sectors, such as the Financial Industry Regulatory Authority (FINRA). This approach aims to relieve the overburdened federal law enforcement agencies, which currently handle multiple priorities including terrorism and drug cartels, from also acting as sports integrity police.

Structural Vulnerabilities in Legal Sports Betting

The rapid expansion of legal sports gambling has fundamentally changed the landscape of sports integrity concerns. Legal sports betting generated $10 billion in revenue through the first nine months of 2025, marking a 19% growth year-over-year. This explosive growth has created unprecedented opportunities for corruption schemes involving players, coaches, and organized betting networks. The NCAA basketball gambling investigation is a prime example, with federal prosecutors charging 26 criminal defendants in connection with an alleged transnational scheme to fix games.

Simultaneously, the MLB and NBA have encountered their own crises, with players charged or banned for their involvement in gambling-related misconduct. This proliferation of legal sports betting, primarily through online platforms like DraftKings and FanDuel, has introduced new avenues for manipulation. The rapid legalization of sports betting across states has outpaced the development of corresponding integrity safeguards, leading experts to describe the situation as “opening up a can of worms.”

Resistance and Advocacy

Despite the urgency of Pokorny’s proposal, major sports leagues have not yet formally adopted the inspector general model. The NCAA, for instance, points to its existing enforcement efforts and calls for the elimination of “prop bets” due to integrity risks. Other leagues have either declined to comment or have not responded to requests for comment. Pokorny argues that internal investigations are insufficient, stressing the need for an independent body to ensure credible oversight. She highlights the compelling business case for protecting a multi-billion dollar industry like sports betting.

The proposal remains in its advocacy phase, sparking discussions among policymakers and industry observers. Some state governors, like Ohio’s Mike DeWine, are taking action on related integrity concerns by urging gambling commissions to restrict prop bets. If implemented, the independent inspector general could fundamentally alter how sports leagues monitor for corruption, providing dedicated investigative resources currently unavailable within league structures.