Legal Sports Betting: The Risk Vs. The Reward

Four states had legal sports betting on their books inhave been intermittent gambling scandals, particularly in
1992 when the federal government banned statescollege basketball, since about 1950, there has been no
from the bookmaking business, and grandfathered inincrease in known point shaving scandals even as the
existing legal sports gambling in Nevada, Montana,money wagered has grown exponentially in the last
Oregon, and Delaware.decade.
Of those states, Nevada has a thriving sports bookThe last dustup occurred in the early 1990s and
business while the other three had various forms ofinvolved North Carolina State player Charles
lottery games that involved sports. In May, DelawareShackleford, who is African American. ABC News
attempted to join Nevada and get a piece of thereported that during the 1987-88 season as many as
estimated $400 billion that is wagered annually, legallyfour N.C. State players, including forward Shackleford,
and illegally, on professional and college sports. Thatconspired to hold down the scores of four games in
attempt was thwarted in August when a federalreturn for cash payments from a New Jersey
appeals court in Philadelphia ruled that sports betting incontractor. According to the report, one of the games
the First State would violate the 1992 federal ban.was March 6, 1988, against Wake Forest. N.C. State
The crux of the appeals court ruling was thatdefeated Wake Forest by four points, after being
Delaware's 1976 failed sports lottery did not constitutefavored by 16. According to Shackleford's lawyer and
enough of a precedent to allow the grandfather clauseagent, Sal DiFazio, Shackleford never shaved points,
of the 1992 law to apply. So, at least for now, legalalthough he admitted taking $65,000 from two men.
sports betting in the United States will not grow outsideShackelford said the money was a loan.
Nevada sports books and various forms of horse andThe notoriety did not affect Shackleford's pro
dog racing.prospects. He played six NBA seasons with the Nets,
The implications of widespread sports gambling for the76ers, Timberwolves and Hornets; plus several
African American community are worth discussing.seasons in Europe. Would an NBA team employ a
Though the Super Bowl is the most wagered sportsnon-star if the team believed it could not trust him to
event with $10 billion estimated to change hands, theplay honestly?
NCAA Men's Basketball Tournament is thought to beJeff, an executive recruiter in Southern California, has
second, with an estimated $6 to $7 billion wageredplayed fantasy football and baseball for years and is
legally and illegally.fluent in the language of point spreads. His point of
While Super Bowl players are in many casesview is pragmatic and optimistic. "Admittedly,
millionaires earning hundreds of thousands of dollars forlegalization of gambling will make it much more
their playoff runs, NCAA Men's Basketball players areaccessible, but the solution does not lie in controlling
unsalaried, often without family money, and in someaccess. The specter of expanded gambling is an ideal
eyes ripe for the taking by gamblers. About three outexample of one of our greatest challenges (and
of four are African American. Are college basketballopportunities) as a society - we need to emphasize
players in particular apt to be influenced by gamblers,the importance of ethical behavior in all aspects of our
and are college athletes in general at greater risk duelives and our activities, and we need to be able to look
to the fact that the payoff for playing college sports isto our sporting heroes as the example to follow."
vastly different than the payoff a pro athlete receivesThe bottom line: gambling is a fact of life in American
from his sport?society and sports whether legal or illegal. Unpaid, less
Mitch, 52, a regular visitor to Las Vegas sports bookswealthy, often African American; athletes, in college
during March Madness who played guard for U.C.may be at greater risk, but with a vast majority of
Irvine's basketball team in the 1970s, doesn't think so. "Igames on television, they are also watched more
personally believe it is very difficult for an individual in aclosely than ever. Legal sports gambling is merely a
team sport to execute a point shaving scam. While it isvehicle for states to get a cut during difficult financial
possible, I do not think the risk warrants futuretimes. The risk of players shaving points or throwing
regulation of legal sports betting."games is no greater or less, regardless of whether the
The facts would seem to bear Mitch out. While thereaction is taxed or part of a black market economy.