As the saying goes, you can’t put the toothpaste back in the tube. Or maybe it’s, be careful what you wish for, that is the more appropriate axiom? Either way, the speed with which sports leagues, franchises, and even colleges and universities have embraced legal sports betting is exciting from the industry’s perspective and alarming from a responsible gambling point of view.

The opportunities it creates are exciting for all involved. At the same time, we’re past the point of no return, as sports (leagues and teams) are now thoroughly intertwined with sports betting, and that is quite alarming.

Teams and leagues didn’t dip their toe in the sports betting pool. They cannonballed into it from the high dive. And they never checked to see if they were jumping into the shallow end.

To quote the fictional Dr. Ian Malcolm, the leagues and teams “were so preoccupied with whether or not they could that they didn’t stop to think if they should.”

A Little Caution Would go a Long Way

The fall of PASPA was a momentous moment in US gambling history. States lined up to legalize sports betting like it was free donut day, and the initial rush caused a chain reaction of rushed behavior.

After turning a blind eye for decades, the idea that illegal betting was taking place on the black market suddenly had to be stamped out immediately. There was no time to waste.   

It’s not controversial to assume the leagues would have liked a much slower pace that allowed them to thoughtfully study the situation and develop a strategy that would have provided some financial benefits while keeping betting at arm’s length.

The leagues did attempt this with their early demands for integrity fees. But integrity fees fell on deaf ears as the idea that leagues deserved integrity fees were roundly ridiculed, and lawmakers rushed legislation through statehouses.

But when the fit hits the shan you have to respond, and that’s precisely what the leagues and teams did when states started passing legislation without integrity fees. They had to make a quick decision, and they decided to go all-in on sports betting.

Plan B was official league data mandates. While it has been a (somewhat) more successful legislative strategy, it doesn’t provide the same level of separation or financial gains that integrity fees would have. And since they’re already in bed with betting through data mandates, they may as well consummate the relationship and form marketing partnerships with gambling operators. And perhaps the most shocking development, secure sports betting licenses making the team a de facto sports betting operator in some locales.

I mean, what could go wrong?

Conspiracy Theories

Fans are accusatory enough, whether it’s tanking or condemning teams for making moves for financial reasons rather than performance. Now imagine a last-place team sitting its best player for an insignificant game. Or imagine Bill Belichick sitting Malcolm Butler in the Super Bowl in the era of sports betting. Or Pete Carroll not handing the ball to Marshawn Lynch? Now imagine if these teams have a stake in sports betting and the decision favors their interest. What are fans and talk radio going to say?

And then there are athletes mentioning sports betting.

Dad? Is that you

— Chase Claypool (@ChaseClaypool)

Again, what could possibly go wrong?

The Slippery Slope

We already see these partnerships extending beyond sports betting and into other forms of gambling. What happens when online casino gambling is legal and widely available? Will sports fans get steered towards online slots games? And how will bettors feel about this, and more importantly, who will they resent, the gambling company or the sports league or team?

A Scandal Is Unavoidable

Sports are not immune to match-fixing or point-shaving scandals, but things get dicey when the league, team, or athlete is directly involved with sports betting. What’s interesting about that is the very thing the leagues argued at the onset of the legal sports betting era, that integrity was paramount, is being challenged by their decision to partner with gambling operators.

Instead of raising alarm bells about integrity, the leagues have kneecapped any defense of that position should something go wrong.

Upshot

Add this all up and the partnerships between athletes, teams, and leagues are something of a ticking time bomb that could lead to a collapse in fans’ confidence in the product and the possibility of increased oversight and regulation – something regulators are already .