When the game turns: betting scandals that shook sports and esports

Sports betting has experienced a massive spike in popularity over the past decade, fueled by widespread legalization, the rise of mobile gambling apps, and exciting sponsorship deals between leagues and sportsbooks. However, alongside the surge in engagement and revenue comes a string of high-profile betting scandals.

From the infamous Black Sox scandal of 1919 to modern-day controversies involving NBA referees and Premier League stars, the link between sports and gambling has, at times, caused controversy. In recent years, the issue has become increasingly complex.

This article will explore some of the most notorious scandals in sports history, examine the fallout from each, and evaluate the steps leagues and law enforcement are taking to prevent future breaches.

In 1919, baseball was rocked by one of its darkest chapters. Eight Chicago White Sox players were accused of throwing the World Series against the Cincinnati Reds, allegedly in cahoots with gamblers tied to mobster Arnold Rothstein.

Frustrated by owner Charles Comiskey’s stingy pay and poor treatment, several players, including Eddie Cicotte and “Shoeless” Joe Jackson, were reportedly offered bribes as high as $10,000 to fix games.

While a 1921 trial acquitted all eight players due to a lack of hard evidence, the new Major League Baseball commissioner, Kenesaw Mountain Landis, handed down lifetime bans. The banishment was based on the belief that, regardless of legal outcomes, these players had betrayed the integrity of the sport.

In 1920, in response to the scandal and to restore confidence in the sport, Major League Baseball created the position of commissioner. To emphasize impartiality, the owners selected Kenesaw Mountain Landis, a federal judge with no ties to the sport. Given absolute authority to govern the sport, Landis could act unilaterally in any situation. In short, Landis had powers like those of a czar.

Landis ruled with an iron grip, and his decision to expel the eight players despite their acquittal sent a clear message that the court of public trust could outweigh the court of law.

More than a century later, the Black Sox scandal remains a pivotal moment in baseball history. It reminds fans how easily trust can be broken and how much they care that the game stays clean. Shoeless Joe Jackson, arguably the most talented of the banned players, has become a figure in baseball lore, the subject of films, books, and an ongoing debate about whether justice was served.

In 1989, MLB's all-time hits leader, Pete Rose, was banned from baseball following an investigation into his gambling activities while managing the Cincinnati Reds. The investigation revealed that Rose bet thousands of dollars on MLB games during the 1985-1987 season, possibly even on games involving the Reds.

In 1989, John M. Dowd, the special counsel to the Commissioner of Baseball, released a 225-page document that included testimonies from bookies and betting slips. Even though there was no evidence that Rose fixed games or influenced the outcome, the act of betting on baseball as a manager was deemed a severe breach of the sport's integrity.

While Rose denied wrongdoing for over a decade, in 2004, he admitted to betting on his team.

With 4,256 hits, Rose was destined for Cooperstown. However, the MLB held firm on its stance that the Hall of Fame voting committee would not consider players who are on the league's ineligible list. Rose's omission from the Hall of Fame was a clear message that no one is above the rules.

Beyond the personal downfall, Rose's case served as a benchmark on how the MLB deals with gambling violations. In fact, in 2024, the MLB permanently banned Pittsburgh Pirates player Tucupita Marcano for betting on games involving his team. Four other players were suspended, but not permanently, as they had bet on baseball, but not on games involving their team.

On September 30, 2024, Rose passed away at the age of 83. Less than a year after Rose passed away, the MLB changed its stance on permanent bans, saying that they would expire after death. In other words, Rose has been reinstated and is now eligible to be elected to the Hall of Fame.

An NBA referee for over a decade, Tim Donaghy, was at the center of a gambling scandal in 2007 when the FBI began investigating his ties to organized crime figures. Donaghy, who admitted to this, had bet on games he officiated, as well as provided insider information such as injury updates, referee matchups, and tendencies that assisted gamblers in profiting. Over the course of four years, Donaghy placed bets through middlemen and earned thousands of dollars.

Donaghy bet on over/under and point spreads, as he could manipulate the score by calling or not calling fouls. His actions violated the NBA's core principle of impartial officiating, casting a cloud on every game he had worked. Acting alone, Donaghy pleaded guilty to two federal charges: conspiracy to engage in wire fraud and transmitting wagering information across state lines. The veteran referee was sentenced to 15 months in prison.

The Donaghy scandal severely damaged the public trust in NBA officiating and the National Basketball Association itself. Even though an internal investigation concluded that Donaghy had acted alone, many fans' perception of biased officiating, which is a common gripe among viewers, was now rooted in criminal behavior. 

In response, the NBA instituted more rigorous training, performance reviews, and limitations on what referees can do financially outside of the league. Donaghy's actions also paved the way for monitoring partnerships with firms like Sportradar. 

In April 2024, the National Basketball Association issued a lifetime ban to the Toronto Raptors forward Jontay Porter after uncovering that he had participated in a betting scheme involving insider information.

It was found that Porter had intentionally limited his playing time in at least two games during the 2023-2024 season. Porter reportedly faked being injured or sick in at least two games, just long enough to come in under his expected stats. Before those games, he tipped off people who placed prop bets on him to underperform.

Aided by sportsbook data and regulatory cooperation, the investigation found that Porter had significant gambling debts and had coordinated with bettors to profit from his manipulation of the game. Porter even gambled on NBA games, including on the Raptors, further violating the NBA's policy. 

The fallout from the Porter case was prompt, with NBA Commissioner Adam Silver reiterating the NBA’s zero-tolerance policy. Silver emphasized the importance of preserving the integrity of the game amid the growing presence of legal sports betting.

The lifetime ban sent a clear message to current and future players that any involvement in manipulating games or betting on the NBA is unacceptable and will be met with the harshest penalties. The incident also triggered renewed discussions about how the NBA educates players on gambling-related policies. Many teams increased in-house training on gambling awareness, while the NBA expanded partnerships with monitoring services. 

In August 2023, English football authorities launched an investigation into West Ham midfielder Lucas Paquetá following suspicions of spot-fixing yellow cards during Premier League matches. 

The suspicious activity came to light after the International Betting Integrity Association flagged irregular betting patterns, with multiple large wagers being placed on Paquetá to receive bookings in specific matches.

At the time of the investigation, Paquetá had been linked with a transfer to Manchester City. Due to the implications, it was subsequently halted. Paquetá has been cooperating with the football authorities and denies all involvement.

As of June, the case is still unresolved. A verdict, however, is expected in a month or two, which will determine the punishment for Paquetá. While the Brazilian midfielder is still playing during the ongoing investigation, the impact has, for now, prevented him from securing a transfer to the Premier League's top tier and an opportunity to play in the UEFA Champions League.

It has also cast doubt on Paquetá's performances and taken a mental toll on him, as evident in a match against Tottenham Hotspur, where Paquetá cried after receiving a yellow card. 

On a broader level, the incident has prompted the football authorities to reevaluate how they educate players about betting risks. It has also highlighted the challenge of monitoring international betting activity, particularly in jurisdictions with varying regulations. Even without a formal charge, the Paquetá case has become a cautionary tale for clubs and players, illustrating that reputational damage can occur long before a verdict is reached.

In 2016, as esports betting sites became increasingly popular among global audiences, South Korean esports star Lee "Life" Seung-Hyun was implicated in a match-fixing scandal. A Starcraft II world champion, Lee was accused of deliberately losing matches in exchange for bribes from illegal gambling operators.

Investigators revealed that Seung-Hyun had accepted roughly 70 million Korean won (about $60,000) to throw games in multiple tournaments.

The Korean e-Sports Association (KeSPA), in collaboration with local prosecutors, has launched a thorough investigation into the scandal. Several players and brokers were eventually charged. Seung-Hyun was found guilty and received a three-year suspended sentence, meaning he could still face 18 months in prison. Additionally, he was banned from professional competition for life.

Seung-Hyun's ban from esports was a turning point for the industry, as he was one of the first globally recognized esports professionals to face criminal prosecution for match-fixing. Until then, much of esports governance had been handled by tournament organizers with limited oversight, allowing room for illicit behavior to flourish behind the scenes.

In the wake of the scandal, the Korean e-Sports Association and other esports bodies introduced more anti-fraud mechanisms, including betting integrity monitoring and mandatory education programs for players. The case also prompted international esports tournaments to implement more explicit rules around gambling conduct. 

The repercussions of betting scandals ripple far beyond the individuals involved. The incidents undermine the foundation that professional sports are genuine, and it is starting to affect more people as more sports fans have access to online betting sites. Once integrity is compromised, the legitimacy of the sport is called into question.

Moreover, athletes and officials caught in scandals not only ruin their careers but also cause reputational damage to franchises, and leagues face questions about systemic vulnerabilities. Not to mention mounting legal costs and pressure from both government regulators and gambling partners that leagues must deal with.

The most damaging aspect of the fallout from a scandal is the impact on fans. The amount of time it takes to build up a fan base and gain their loyalty can crumble at the drop of a dime. Fans are, in essence, a currency. And no matter how thrilling a contest may seem, it loses all meaning if the spectator suspects that the outcome has been bought. 

Sponsorship deals and media rights contracts are worth billions of dollars across the global sports industry. The assumption when making these deals is that the games played are fair. When that assumption falters, so does commercial confidence. 

Betting scandals can prompt advertisers to pull funding and cause politicians to demand stricter regulations. They also snowball into the marketing and merchandise.

Often overlooked is the psychological impact on athletes. Players who are falsely accused or caught in the crossfire of a scandal may struggle on and off the field. Their once-sterling perception can be damaged. In environments where gambling is prevalent, young or financially vulnerable athletes may be more susceptible to coercion or corruption.

All told, betting scandals leave scars. While time heals scars, some remain visible.

In response to the surge in both legal and illegal betting activity, major sports leagues and governing bodies have invested in advanced fraud detection systems. Top leagues, including the MLB, NHL, NFL, NBA, and Premier League, have formed partnerships with integrity monitoring firms such as Sportsradar, Genius Sports, and IC360.

Using algorithms and real-time data, these firms can identify suspicious betting patterns, such as unexpected line movements or abnormal prop bet wager activity.

Leagues now work closely with sportsbooks and betting regulators to immediately alert them to flagged activity, enabling investigators to identify and trace irregularities quickly. In high-profile cases, such as those involving Jontay Porter and Lucas Paquetá, sportsbook data and betting logs played a crucial role in launching formal investigations.

Education has become one of the primary tools in preventing disease. In most major sports organizations, players, coaches, and officials are required to complete mandatory training on gambling awareness and ethics.

These programs are designed to cover the legal betting landscape, including league rules, examples of past violations, and the consequences that accompany such infractions.

As mobile apps, prop bets, and gambling platforms become more common, younger athletes, in particular, are at an increased risk of exposure. By proactively educating players, leagues aim to reduce potential violations and reinforce the boundaries between participating in sports and betting. 

Once rare, betting scandals have come to light in a sports environment heavily influenced by gambling, thanks to the advancements in technology.

As sports betting surges globally and expands rapidly, the pressure on leagues, players, and governing bodies to maintain fair play has never been greater. The recent wave of scandals involving match-fixing, insider betting, and player manipulation highlights the vulnerability of athletes and sports.

Sports organizations are no longer treating these incidents internally. They are strengthening oversight by partnering with technology firms and law enforcement. Maintaining the public's trust is an ongoing effort. One incident can cause lasting damage and erode trust. Organizations are aware of this and have financially leaned in to prevent further issues.

Ultimately, the integrity of the game is not merely a moral standard; it's the very foundation upon which all professional sports depend.