EDITORIAL: For sports betting industry, heavy hand of Congress looms

The Shohei Ohtani gambling controversy is the latest in a recent spate of incidents involving professional or college sports leagues and wagering. Perhaps this was inevitable given the rapid legalization of sports betting in most states and its subsequent embrace by leagues and organizations that had previously treated gambling as kryptonite.

The Ohtani matter will play out. Is there more to the story than a betrayal by a trusted friend? It’s hard to keep secrets these days. But the revelations come after the NBA suspended a Toronto Raptors forward over irregularities involving prop bets. The NFL last season suspended a number of players for making legal bets on other sports from team facilities.

The risk to betting companies is obvious. U.S. Rep. Dina Titus, a Nevada Democrat, got it right when she noted in a recent news release that “the regulated sports betting industry must adequately monitor integrity issues while providing protections for players. League partners must take this issue seriously. If self-regulation doesn’t work and industry leaders are not proactive in taking preventive measures, calls for the government to step in will only increase.”

In fact, that’s already happening. Prior to the NCAA basketball tournament, Sen. Richard Blumenthal, D-Conn., issued a thinly veiled warning on another front.

“Sports betting companies are exploiting, targeting and taking advantage of vulnerable problem gamblers, especially during these coming weeks,” he argued. “How? They are enticing those problem gamblers to do more. They are enticing problem gamblers by targeting them based on the data they collect in real time about who is betting how much and where, and they are collecting that data and then targeting the most vulnerable problem gamblers to do more, leading them down dark paths to addiction. And the reason very simply is that they want to make more money.”

Sen. Blumenthal had previously threatened action against sports betting companies that marketed to college students through their universities. The American Gaming Association later announced a new policy that bans sports betting companies from being involved in name, image and likeness payments to student-athletes while curtailing marketing efforts that partner with colleges — although not every sports betting company is a member of the AGA.

The fact that leagues are cracking down on athletes who violate policies and the industry is becoming more responsible in its recruitment and retention efforts is a positive sign. But Rep. Titus is correct and her recommendations make eminent sense. Absent enhanced due diligence by leagues and sports betting interests, members of Congress will find it impossible to resist using their collective heavy hand.