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Insider knowledge is like insider trading and ruins the integrity of the sport

By ALEX MOTAWI – [email protected]

Sports betting has been around for ages. Many baseball fans know the Black Sox Scandal (where the White Sox intentionally lost World Series games to help players in 1919), and many American sports fans have heard of the life of former professional baseball player and manager Pete Rose. to prohibit to bet on his own games as a manager, which was handed over in 1985. American sport has had a checkered history with sports betting, and we are quickly entering what could be the worst era to date, in what concerns betting. With the return of bets in force due to a 2018 Supreme Court decision, conflict of interest problems arise everywhere. Sports owners and journalists are enjoying too much of an advantage over betting, so they should not be allowed to affiliate with betting sites.

The rise in betting began in 2018 when the law on the protection of professional and amateur sports (PAPSA) was repealed by the Supreme Court. PAPSA was a rule introduced in 1992 (shortly after Pete Rose’s ban) that prohibited most states from legalizing sports betting. It was repealed on the grounds that regulated sports betting is a great way for states to recover funds through taxes, and it paved the way for states to legalize sports betting. Now that states have had time to legalize betting, a litany of services has risen from the woods, bringing American sports betting into a golden age. With the two sports leagues and the government strapped for cash, greedy the owners and The politicians have turned to betting as a solution.

In California we might have the opportunity to vote in 2022 to decide whether or not to join the 33 states that have legalized sports betting. Currently, the only way to bet on sports in California is through online sites located in other countries. Legalization could therefore lead to better regulatory practices, although it raises a whole host of other issues.

One of these problems is that sports insiders like owners or journalists can abuse their status to tip the scales in favor of their betting companies. While at first glance it might seem like a small problem, small problems add up when the money is at stake. It needs to be reviewed and stopped, and the leagues in question (primarily the NFL) are unlikely to do anything. unless you are forced to. Team owners have the power to run the league and its policies and are not going to willingly give up their ownership in these betting companies poised to skyrocket over the next few years without a push. Even if you don’t believe in sports betting as an institution, anyone can recognize an unfair deal and make a conscious choice to help others.

There are many reasons why this is a dangerous conflict of interest. Pre-match, a team receives 75% chances to win the game. Only the team owner knows that the team’s star player is going to be sick. They can then set the odds to reflect a 65% chance the team will win. This will lead bettors to bet heavily on the win with 65% odds as they will receive a better payout. Now the betting line has a lot of money on the winning team because the public sees the 75% inaccurate odds. However, since the star is not playing, the real odds of winning for the team are instead 25%. The team starts the game without their star, loses the game and the site benefits a lot as it has used its internal influence to motivate bettors to bet for the bad outcome on the site. This is a complicated example because sports betting is a complicated business, and it is definitely not fair.

Such power, even if it affects only a fraction of the games, quickly adds up to large sums of money stolen from the pockets of punters playing a foul game. He fills the company’s cash registers and scams the punters. It is no different from the concept of insider trading in the stock market, and the stock market works to prevent insider trading and imposes heavy penalties on those arrested.

If sports betting is to be mainstream and government approved in California – and throughout the United States for that matter – it needs to be regulated. Team owners, journalists, players and anyone else with inside information must sell their stakes in betting companies and find something else to do with their big piles of money. I would recommend tackling homelessness or world hunger, but that’s just me. This is the only way to make the system fair and to let players bet their money on sport on a level playing field. We need to push the leagues and our government to enforce more regulation on these conflicts of interest – it is only fair.

Written by: Alex Motawi – [email protected]

Disclaimer: The views and opinions expressed by individual columnists belong to the columnists only and do not necessarily reflect the views and opinions held by The California Aggie.

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