Can Sports Be Repaired After the Damage of Gambling Sponsorships?

By Steven Warshaw, Founder and Creative Director of Universal Sports Marketing

Gambling has become deeply intertwined with sports, lining the pockets of teams and leagues. What was once a taboo topic, relegated to the shadows of Las Vegas casinos and underground bookies, has now become a mainstream juggernaut. According to the American Gaming Association, regulated sports betting generated $11.04 billion in revenue last year, up 46% from 2022. This financial windfall has league commissioners and team owners salivating, but at what cost?

Pete Rose, baseball’s all-time hits leader, has been banished from the sport for decades because he bet on his team to win. He’s got company now — each of the four major sports leagues has suspended players within the last year for violating gambling policies. Tucupita Marcano is banned for life by Major League Baseball, the most severe punishment in sports since Rose.

I spent a career filling arenas, turning problems into gate revenue. Even Rose was marketable when he was the only one in sports purgatory. But there’s no fixing this now that it’s spread across all of sports. What exactly did these commissioners think was going to happen?

The modern athlete lives in a world of constant marketing, social media presence, and tech connectivity. They are bombarded with gambling advertisements, surrounded by a culture that increasingly normalizes betting, and have instant access to mobile apps that make placing a wager as easy as ordering a pizza. It was inevitable that ethical lines would blur and boundaries would be tested.

The Shohei Ohtani scandal serves as a perfect illustration of the complexities and dangers of this new gambling-saturated landscape. When allegations surfaced that Ohtani’s interpreter was involved in illegal gambling activities, the sports world held its breath. The situation quickly spiraled into a PR nightmare, demonstrating how even the perception of impropriety can tarnish the reputation of a superstar athlete.

The handling of the Ohtani situation highlights another crucial aspect of the gambling problem: the importance of swift, transparent communication. In an age where information – and misinformation – spreads at lightning speed, the failure to address allegations promptly can lead to lasting damage. The ambiguity surrounding Ohtani’s case allowed speculation to run rampant, potentially affecting his legacy regardless of the final outcome.

How can leagues maintain the integrity of their sports while simultaneously profiting from gambling partnerships? The conflict of interest is glaring, yet the financial incentives are too lucrative to ignore. It's a classic case of “pigs get fat, hogs get slaughtered” – a phrase that aptly describes the current state of affairs in professional sports.

The ease of access to gambling has made it the new methamphetamine — it will lead to endless bankruptcies, divorces, addictions, and evictions. The difference now is that instead of bookies breaking arms, credit card companies and banks are enabling financial ruin with the tap of a screen. And the leagues are OK with that as long as the game wasn’t manipulated.

Leagues are attempting to mitigate risks by implementing strict policies on players, but we can’t put this genie back in the bottle. The gravy train of gambling money into sports raises questions about the integrity of the games themselves. When billions of dollars are at stake, the temptation to influence outcomes becomes even greater. While player salaries have skyrocketed, making it seem illogical for athletes to risk their careers for gambling gains, human nature and the allure of easy money remain powerful forces.

As we witness the consequences of this gambling gold rush unfold, can these leagues reclaim the moral high ground after so eagerly embracing the gambling industry?

The path forward is clear, though undoubtedly challenging. All professional sports leagues must take decisive action by implementing a comprehensive ban on gambling for any team or league employee. Not just on their own sports. All sports. This blanket prohibition is the only way to definitively address the ethical quagmire created by the leagues’ embrace of gambling revenues.

Enforcing such a widespread ban and ensuring compliance among thousands of professional athletes, trainers, and coaches is a daunting task. That is the price that must be paid for the greed that has allowed sports’ morality to be questioned.

An all-out ban may seem extreme, but it is necessary to restore integrity to professional sports. The fraternity of athletes across different sports, the potential for shared insider information, and the ever-present temptation of easy money make anything less than a total ban insufficient.

Leagues and team owners must recognize that the long-term costs of compromised integrity far outweigh the short-term financial gains from gambling partnerships. It’s the only way professional sports can begin to reclaim the moral high ground and reaffirm their commitment to fair play and ethical competition.

In the end, the future of professional sports hinges on this decision. Will leagues prioritize the integrity of their games and the trust of their fans, or will they continue down the slippery slope of gambling entanglement? The answer to this question will determine whether sports remain a beloved cultural institution or devolve into just another form of commercialized entertainment, forever tainted by the specter of manipulation and greed.