Sports fans across the country are watching with bated breath as two of America’s biggest professional leagues, Major League Baseball (MLB) and the National Basketball Association (NBA), face a wave of betting scandals and crackdowns that could reshape the entire landscape of sports wagering. In a year already brimming with controversy, the leagues are scrambling to protect their integrity, issue stern warnings to players, and distance themselves from the shadowy world of prediction markets and illegal gambling rings.
On August 26, 2025, MLB took a decisive step, issuing a memo to all players—major and minor leaguers alike—banning participation in baseball-related event contracts on prediction markets such as Kalshi and Polymarket. The memo, titled "Re: Baseball Related Prediction Markets," came straight from commissioner Rob Manfred’s office, with the full backing of the players union. It didn’t mince words, declaring that these activities were a clear violation of the league’s long-standing betting rules. Screenshots from Kalshi, dated May 5, 2025, were even included as evidence of the growing concern.
"Several companies (including Kalshi, Robinhood, and Crypto.com, among others) are now offering what they call ‘prediction markets,’ which allow members of the public to risk money on the outcome of specific events, including baseball and other sporting events," the memo stated. The league emphasized that participation in such markets was strictly off-limits, highlighting the need to preserve the sport’s integrity amid mounting legal and ethical challenges.
This stern warning arrived as MLB was grappling with a scandal of its own. On November 9, 2025, Cleveland Guardians pitchers Emmanuel Clase de la Cruz and Luis Leandro Ortiz Ribera were charged with wire fraud and bribery-related conspiracies for allegedly helping rig bets on MLB pitches. Prosecutors allege the scheme involved hundreds of thousands of dollars, casting a dark cloud over the sport and fueling the league’s urgency to clamp down on betting-related misconduct. According to the U.S. Attorney for the Eastern District of New York, the charges are part of a broader investigation into sports betting and money laundering conspiracies that threaten to undermine the credibility of America’s pastime.
MLB’s recent move is especially notable given its own enthusiastic embrace of sports betting in recent years. The league has inked lucrative partnerships with operators like DraftKings and FanDuel, joining the NBA and PGA Tour in pushing for legalized sports wagering. Yet, when it comes to prediction markets—platforms that let users buy and sell contracts based on the outcome of sporting events—MLB has been far more cautious, wary of the regulatory gray areas and the potential for abuse.
The league’s concerns aren’t unfounded. The NHL, for instance, has already struck agreements with both Kalshi and Polymarket, while the NFL has taken a more skeptical stance. NFL Commissioner Roger Goodell, speaking at the Genius Sports Investor Day on December 3, 2025, made it clear that the league isn’t ready to dip its toes into prediction markets without a robust regulatory framework. "On the predictive markets… for us, that’s not something we’re about to enter into. We are going to see how things play out, both from a regulatory standpoint … There are a lot of legal challenges going on right now," Goodell explained, underscoring the NFL’s apprehension about the risks to the sport’s integrity.
Meanwhile, the NBA is reeling from its own high-profile scandals. On December 8, 2025, Miami Heat point guard Terry Rozier stood before a Brooklyn federal court, pleading not guilty to wire fraud and money laundering conspiracy charges. Prosecutors allege Rozier conspired with friends to help them win bets on his performance in a March 2023 game, back when he played for the Charlotte Hornets. The scheme, according to the indictment, involved Rozier tipping off gamblers that he intended to leave the game against the New Orleans Pelicans early due to a supposed injury. Rozier played just 9 minutes and 36 seconds before exiting with a foot issue and did not appear again that season—a move that allegedly netted his associates tens of thousands of dollars in winnings.
Rozier, who has earned about $160 million over a ten-year NBA career, was released on a $3-million bond secured by his Florida home and another property. He’s now under strict court orders: no gambling, no firearms, no contact with victims, co-defendants, or witnesses, and his passport has been surrendered. He’s restricted to traveling between Florida, Ohio, and New York unless given special approval. According to his attorney, Jim Trusty, Rozier is "excited" to mount his defense, and a motion to dismiss the case on constitutional grounds is forthcoming. The next hearing is set for March 3, 2026, with prosecutors preparing to hand over a mountain of evidence—over 1,000 documents and more than 55 gigabytes of data.
The Rozier case is just one strand of a much larger federal crackdown on illegal gambling linked to professional sports. More than 30 individuals have been arrested, including several alleged Mafia figures. The investigation has ensnared other NBA notables as well. Portland Trail Blazers head coach and NBA Hall of Famer Chauncey Billups pleaded not guilty last month to charges related to fixing high-stakes, Mafia-backed illegal poker games. Former NBA player Damon Jones, who served as an unofficial assistant coach for the Los Angeles Lakers during the 2022-2023 season, faces allegations that he provided sports bettors with nonpublic injury information about stars LeBron James and Anthony Davis. Both Billups and Rozier have been placed on unpaid leave by their teams while the legal process unfolds.
As the NBA and MLB navigate these turbulent waters, the question on everyone’s mind is: How can the leagues protect the integrity of their games in an era when gambling is more accessible—and more lucrative—than ever? The answer, it seems, involves a delicate balancing act. On one hand, the leagues are eager to tap into the massive revenue streams offered by legal sports betting partnerships. On the other, they’re keenly aware of the risks posed by prediction markets, insider schemes, and organized crime.
It’s not just the leagues themselves that are under the microscope. The players, some of whom have earned nine-figure fortunes, are now being reminded in no uncertain terms that their actions—on and off the field—carry enormous consequences. With scandals swirling and court cases looming, the world of professional sports finds itself at a crossroads, forced to reckon with the very real dangers that come with the territory of big money and bigger temptations.
For now, both MLB and the NBA are making it clear: the rules are changing, the stakes are higher, and the spotlight on player conduct has never been brighter. As legal battles play out and further revelations emerge, fans, teams, and league officials alike are bracing for what could be a transformative chapter in the history of American sports.
