USA Law and Practice Contributed by: Irwin A. Kishner, Daniel A. Etna, Joel Wagman and Barry Werbin, Herrick, Feinstein LLP
Recent Noteworthy Betting Cases/ Disciplinary Actions
games for betting purposes. The former player also faced criminal charges and pled guilty to conspiracy to commit wire fraud in a criminal case stemming from the same conduct. 1.3 Betting Across the USA, sports betting is part of popu - lar sports culture and many states have passed, and are continuing to pass, legislation to legal - ise sports betting in varying forms. Such forms include mobile sports betting with multiple sportsbooks options, one mobile betting option, in-person online betting (ie, proximity to brick- and-mortar sportsbooks) and only physical sportsbooks. Some states restrict sports betting to only in-person betting, while others allow both in-person and mobile betting options. Currently, almost 40 states allow sports betting in some form, with over half of states allowing mobile betting. While the legalisation of sports gambling is still growing in the USA, it has solidified as a new norm. The amount wagered on sports in the USA has continued to boom, consistently setting annual growth rate records year over year. 2024 was no different, with the total amount wagered in the USA surpassing the USD100 billion mark. Sports Governing Bodies Sharing Information With Betting Operators US sports leagues license their data to sports betting operators via exclusive or co-exclusive distributors to provide accurate, real-time data for an agreed-upon fee. Sportsbooks operate outside of the sports, but often license from the sports organisations, as opposed to a third-par - ty organisation. Sports organisations enjoy the win-win of earning fees for the data collection already underway and protecting the integrity of the sports wagers by ensuring accurate results. Certain states (eg, Illinois and Tennessee) require that operators use official data for certain sports wagers, namely props or in-play betting.
There are few examples of disciplinary action for sports betting violations. However, in 2019, for the first time since the 1980s, the National Foot - ball League (NFL) disciplined a player for wager - ing on NFL games. Josh Shaw, an Arizona Car - dinals cornerback, was indefinitely suspended for betting on multiple NFL games. Jacksonville Jaguars wide receiver Calvin Ridley (at the time a member of the Atlanta Falcons) became the first NFL player to be suspended since Shaw. Ridley was suspended for the 2022 season after placing a legal mobile bet in Florida in 2021 that included a bet on the Falcons to win, but was reinstated for the 2023 season. Since then, the NFL has suspended a total of ten players for betting on NFL games over the last two years, a marked increase in these types of violations and corresponding punishment. 1.4 Disciplinary Proceedings The steps taken by the different governing bod - ies of sports with respect to doping, integrity, and betting offences vary by sport and violation. For example, pursuant to the Major League Base - ball’s (MLB’s) Joint Drug Prevention and Treat - ment Program (the JDPT Program), a player who tests positive for a performance-enhancing sub - stance is subject to an 80-game suspension for a first violation, a 162-game suspension with 183 days of pay suspension for a second violation, and potential permanent suspension from major and minor league baseball for a third violation. This contrasts with other sporting bodies, such as the NFL which, although having a shorter sea - son, has slightly different punishments for similar violations. For example, a player who violates the NFL’s policy on performance-enhancing substances can be penalised, depending on the consumed substance, from anywhere between two and eight regular and/or postseason games
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