Can Prohibet Fill Large Void In Enforcing Sports Betting Violations?

Over the last six months, dozens of college and professional athletes have found themselves in hot water for violating league policies by wagering on sports.

The infractions have ensnared athletes at two major Iowa universities, placing their collegiate careers in jeopardy. In the professional ranks, suspensions have cost NFL players millions of dollars.

A cutting-edge tool that provides regulatory and compliance solutions through an encrypted, cross-monitoring platform may help prevent such problems in the future. Launched in April, Prohibet offers “one-stop shopping” for regulators, sportsbook operators, and leagues in detecting gambling activities among athletes.

In the last month alone, the UFC, two major sportsbook operators, several collegiate conferences, and a university in the Atlantic Coast Conference have partnered with Prohibet for enhanced sports wagering monitoring resolutions. The product officially went into use on Sept. 1, as prior to that it was in a beta-pilot phase.

At the moment, Prohibet is one of the sports betting industry’s only comprehensive solutions that monitors prohibited bettor activity, according to the company. From a regulatory standpoint, there has been widespread support for the product, said Matt Heap, managing director of Prohibet, in an interview with In June, Heap held a call with around 130 regulators from numerous states across the country.

In most cases, sportsbook operators have likely conducted their due diligence to determine if bettors under scrutiny were also prohibited from wagering, Heap notes. But until now, in his view, there has not been a commercially reasonable product like Prohibet to serve as a check with the expansive databases maintained by the operators.

“It’s going to be great for the industry in putting that force field up,” Heap said.

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As the threat of large-scale cyber intrusions proliferates, the importance of protecting a bettor’s Personal Identifiable Information (PII) has become increasingly critical. But when it comes to flagged betting incidents, balancing data protection with the need to conduct a thorough, speedy investigation may require high-wire dexterity. A ubiquitous, high-tech clearinghouse such as Prohibet could deliver the solution.

Suspensions in the NFL

Every major U.S. pro sports league has restrictions in place that bar athletes from wagering on their own sport. The NFL also has a zero-tolerance policy for gambling in the workplace, although that’s not the case in all leagues.

In the NBA, for instance, a player from the Minnesota Timberwolves would be prohibited from placing a prop on the first player to sink a 3-pointer in a Lakers-Clippers game. There are no restrictions, however, on the NBA player being able from his locker to wager on the winner of The Masters.

In the NFL, once a player enters a league facility, there is a blanket policy that prohibits him from betting on any sport. The players are also restricted from engaging in other forms of gambling such as online poker and blackjack.

When asked last week how the NFL views the commercialization of legal sports betting, Commissioner Roger Goodell responded that protecting the integrity of the game is the league's utmost priority. That was several weeks after Goodell commented that the league's policies regarding sports betting “will evolve” in the wake of a rash of player suspensions during the 2023 offseason. Since mid-April, nearly a dozen NFL players have been suspended for gambling-related violations, most notably former Indianapolis Colts defensive back Isaiah Rodgers Sr.

Rodgers, who apparently apologized to teammates for his gambling transgressions, reportedly placed hundreds of wagers on sports, including many from his locker at the Colts’ practice facility, a source told . In one notable case, according to ESPN, Rodgers placed a $1,000 wager on a former teammate to hit the over on a rushing yardage prop in a 2022 game.

Prohibet’s system contains real-time alerts that allow for potential regulatory and sports league violations to be addressed proactively and swiftly, according to the company. The collaborative solution may result in greater transparency in assessing potential policy infractions. In turn, some prohibited bettors who engage in rampant wagering violations could be caught before their gambling habits spiral out of control.

Although some form of sports betting is legal in more than 30 states, hardly any states compel the leagues to share a list of prohibited bettors. Nearly all state laws, however, list college and professional athletes and those associated with college and professional teams as being prohibited from betting. The lists can be used as an enforcement tool against certain gamblers who are excluded from wagering on sports.

In Colorado, where Heap once served as the division of gaming’s head of sportsbook operations, a prohibited sports betting participant includes “any person who is an athlete, coach, referee, or player,” in an event overseen by that “person’s sports governing body.”

There are also detailed regulations covering prohibited sports bettors in Ohio and Michigan. In the Buckeye State, which launched online sports wagering in January, a sports governing body must have a procedure for providing the Ohio Casino Control Commission with a “list of persons who are involved in sporting events.” Most states have language with definitions of “prohibited bettors.”

  
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