Our Approach to Learning

MBA

Will Sportsbooks Ban Prop Bets? MLB's Betting Scandal Raises Questions About Preventative Systems

Professor Bakowicz spoke with MLB News about sports betting.

Kogod Hero Images_Sports and Business 2C

The article covers how Major League Baseball has imposed strict limits on pitch-level prop bets after two pitchers—Emmanuel Clase and Luis L. Ortiz—were indicted for allegedly rigging specific pitches to benefit gamblers, prompting the league and sportsbooks to cap such bets at $200 to protect the integrity of the game.

  • Two pitchers from the Cleveland Guardians—Emmanuel Clase and Luis L. Ortiz—have been indicted on charges including wire fraud conspiracy, bribery, honest-services fraud, and money laundering after being accused of rigging individual pitches to influence sportsbook prop bets.

  • According to the indictment, the alleged scheme involved the pitchers intentionally altering pitch outcomes (e.g., throwing balls instead of strikes or varying pitch velocity) so that bettors—who were pre-informed—could win wagers on highly granular prop-bets tied to single-pitch events.

  • In response to the scandal, major sportsbooks and Major League Baseball (MLB) have limited pitch-level prop bets: such micro-bets are now capped at $200 and excluded from parlays, an attempt to curb the heightened integrity risks posed by individually manipulable events.

    “Since the Supreme Court decision opened the door to legalized sports betting, Major League Baseball has continuously worked with industry and regulatory stakeholders across the country to uphold our most important priority: protecting the integrity of our games for the fans," says Bakowicz.

Read here.