Baseball's Best Bet: A Call for the Legalization of Baseball Gambling in the United States

A. Baseball and gambling

Baseball is an institution that holds a special place in American society. This game, invented in the United States before the dawn of the twentieth century, has been described as “an integral part of American culture.” ¹ As Hall of Fame umpire Bill Klem stated, “Baseball is more than a game … it's a religion.” ² Baseball is an institution that has been a constant in the United States for over one hundred years. The World Series, the climax of the baseball season, has only been cancelled one time since 1904. ³ As such, baseball holds a special place in the hearts of the American public. In 2014, 73.7 million people attended Major League Baseball games, evidencing a large modern interest in the game. ⁴ The importance of baseball to American culture simply cannot be overstated.

Sports gambling in the United States holds a similarly important role in American culture and society. As Roger Dunstan stated, “The United States has had a long history of allowing some forms of legal gambling and a degree of tolerance of illegal gambling.” ⁵ The United States was “founded on lotteries” and, despite various prohibitions until the 1960s, still holds a prominent role in America. ⁶ Sports gambling in particular is a massive industry in the United States. In 2012, Nevada's sportsbooks made $170 million in gross revenue. ⁷ Furthermore, an estimated $4 billion is wagered in Las Vegas yearly. ⁸ Moreover, estimates are that legal sports gambling in the United States accounts for only a small percentage of the actual gambling industry in this country. Illegal gambling, in which it is estimated that between $80 billion and $380 billion is wagered each year, is a much larger industry. ⁹ The illegal sports gambling industry has been valued as being worth $380 million. ¹⁰ As such, illegal sports gambling is a “thriving industry” in the United States. ¹¹

For better or worse, “there has always been a link between baseball and gambling.” ¹² Early in baseball's history, the game provided “sportsmen” with an opportunity to wager on games, thereby making the viewing experience more enjoyable. ¹³ However, the public's interest in gambling on baseball has also led to serious scandals that impaired the popularity of the game and the public's trust in the legitimacy of baseball's results. In 1865, baseball experienced its first public gambling scandal, when catcher William Wansley was paid $100 to fix a game between his New York Mutuals and the Brooklyn Eckfords. ¹⁴ At the conclusion of the game, in which the fix led by Wansley was glaringly obvious, Henry Chadwick, a reporter for the New York Clipper, stated, “Baseball has never yet been disgraced by any such thing, and never will, we hope.” ¹⁵ However, the Wansley incident was only the beginning of a history of scandals that plagued baseball in the then-immediate future. Baseball became so rife with gambling scandals that the National Association of Baseball Players, one of the first professional baseball leagues, “was besieged with rumors of gambling and fixed games,” which in turn caused public interest in the league to fade. ¹⁶ At the turn of the twentieth century, baseball solidified its structure into two leagues, the American and National League, shed the ugly shroud of gambling that clouded its reputations in previous years, and “[grew] to the point where it had truly become America's national game.” ¹⁷

However, the Black Sox scandal in 1919 “put the game's very survival in doubt.” ¹⁸ The Black Sox controversy, which has been described as “the greatest scandal in the history of sports” and “one of the most talked-about events in baseball history,” centered on rumors of a conspiracy to fix the World Series orchestrated by members of the 1919 American League champion Chicago White Sox and gamblers' intent on profiting off of the fix. ¹⁹ After news of the fix was discovered, eight players were charged with conspiracy to defraud. ²⁰ Further, these players were placed on baseball's ineligible list, meaning they were banned from playing in the American League and National League for the rest of their lives, as well as being prohibited from being inducted into the Baseball Hall of Fame. ²¹ The Black Sox scandal cast a shadow over the integrity of baseball that took years to overcome.

However, professional baseball did recover and “has been free of any serious charges of game fixing since the 1920s.” ²² One of the most important figures in eliminating any allegations of game fixing after the Black Sox scandal was Commissioner Kennesaw Mountain Landis, who instituted a statute of limitations on previous charges and a code of conduct for all baseball players. ²³ Despite the lack of any charges of game fixing in Major League Baseball, the game has not eliminated connections to gambling completely. Pitcher Denny McClain was suspended for three months in 1970 as a result of his participation in a bookmaking operation and that operation's connection to organized crime. ²⁴ More famously, Pete Rose, MLB's all-time hits leader, was placed on MLB's permanently ineligible list after evidence was discovered that he had been betting on baseball between 1985 and 1987. ²⁵ While the Pete Rose scandal is the last major gambling scandal to affect MLB, gambling scandals have affected other levels of baseball to varying degrees. ²⁶ The connection between baseball and gambling has a long history that has done considerable damage to the game. However, this connection has helped baseball become what it is today, and the harms imposed by gambling, at least since the Black Sox scandal in 1919, have been limited in their damage imposed on the integrity of the game. MLB's recovery since the Black Sox scandal shows that MLB can endure serious scandals, even charges of game fixing at the game's biggest stage.

B. The Professional and Amateur Sports Protection Act

On October 28, 1992, President George H.W. Bush signed into law Senate bill 474, otherwise known as the Professional and Amateur Sports Protection Act (PASPA). ²⁷ PASPA was passed in an effort to “criminalize [offshore] operators servicing domestic sports gamblers.” ²⁸ PASPA was passed in light of numerous policy concerns relating both to sports themselves and society at large. ²⁹ Senator Bill Bradley, a former professional basketball player, stated his support for PASPA because, among other reasons, “[a]thletes are not roulette chips, but sports gambling treats them as such.” ³⁰ Senator Bradley also expressed concern that “[i]f the dangers of state sponsored sports betting are not confronted, the character of sports and youngsters' view of them could be seriously threatened.” ³¹ Another benefit of PASPA, Senator Bradley has stated, was to protect the integrity of sports for America's youth such that “the values of character, cooperation, and good sportsmanship that have figured so heavily in the growth of athletic competition throughout the ages are not significantly compromised.” ³² As a result of these and other policy concerns, PASPA makes it unlawful for a person to engage in “a lottery, sweepstakes, or other betting, gambling, or wagering scheme based, directly or indirectly (through the use of geographical references or otherwise), on one or more competitive games in which amateur or professional athletes participate, or are intended to participate, or on one or more performances of such athletes in such games.” ³³

In simpler terms, PASPA makes it illegal for a state to permit sports gambling, except pari-mutuel gambling on animal racing or jai-alai, unless the state had previously authorized sports gambling before PASPA was enacted or sports gambling was authorized in the state within one year of PASPA's effective date. ³⁴ Nevada is the only state that currently authorizes full sports gambling at casinos, including legal baseball gambling. ³⁵ Therefore, 49 states are completely barred by PASPA from creating any form of legalized gambling on baseball.

Two major challenges to PASPA have been litigated in recent years. On May 14, 2009, Jack Markell, governor of Delaware, signed the Sports Lottery Act into law. ³⁶ The Sports Lottery Act authorized the state of Delaware to facilitate sports gambling at certain facilities in the state. ³⁷ On July 24, 2009, Major League Baseball, the National Football League (NFL), the National Basketball Association (NBA), the National Hockey League (NHL), and the National Collegiate Athletic Association (NCAA) filed suit against Markell, alleging that the Sports Lottery Act violated PASPA. ³⁸ The plaintiffs argued that the state had violated PASPA by authorizing a sports gambling operation in the state that was not authorized by the state when PASPA was enacted in 1992. ³⁹ The state argued that PASPA's language, specifically allowing sports gambling “to the extent that the scheme was conducted by that state” before PASPA's enactment, allowed the state to pass the Sports Lottery Act. ⁴⁰ The Third Circuit, construing the language of PASPA strictly, found for the sports leagues. ⁴¹ Through its holding in Markell, the Third Circuit narrowly construed the exception allowed in PASPA, which impairs the ability of any state besides Nevada to implement any sort of sports gambling, even the states that allowed a limited form of sports gambling when PASPA was enacted.

The same group of sports leagues recently filed suit against New Jersey Governor Chris Christie alleging that a proposed New Jersey law authorizing sports gambling in the state violated PASPA. ⁴² In affirming the lower court's decision, the Third Circuit stated that, while the morality and necessity of allowing sports gambling “[engenders] strong views,” PASPA is nonetheless constitutional. ⁴³ The Third Circuit noted that the reputational harm that the sports leagues could suffer due to the “link between legalizing sports gambling and harm to the integrity of the [leagues'] games” is a “cognizable injury.” ⁴⁴ With this reputational harm as the basis for the leagues' standing to challenge the New Jersey law, the Third Circuit held that the law violated PASPA's recognition of federal policy that sports gambling “should not occur under the auspices of a state license.” ⁴⁵ The holdings in Markell and Governor of New Jersey suggest that PASPA is a law that stands up to constitutional challenges, will be strictly construed by courts, and needs to be repealed by Congress to give states other than Nevada the ability to legalize baseball gambling.

C. MLB's current stance on gambling

Major League Baseball, despite a sordid past with gambling, has expressed support for the idea of the legalization of baseball gambling. MLB Commissioner Rob Manfred stated in February 2015, “It's important for baseball to give fresh consideration to the issue” of the legalization of sports gambling. ⁴⁶ Citing the idea that “[g]ambling in terms of our society has changed its presence,” Commissioner Manfred went on to state, “I think it's important for there to be a conversation between me and our owners about what our institutional position will be.” ⁴⁷ The apparent willingness of Commissioner Manfred to shift MLB's official position on the legalization of sports gambling is an important ideological shift that shows the change in public opinion regarding the legalization of gambling. Commissioner Manfred's comments are also important in noting that MLB as an institution would be open to the consideration of the legalization of baseball gambling and could perhaps support this venture, if the states were allowed to do so through Congress's repeal of PASPA.

A. Revenue

The main benefit of the legalization and regulation of baseball gambling for the MLB and the states that would oversee its implementation is the substantial revenue that stands to be gained due to the popularity of sports gambling in the United States. As previously discussed, the gambling industry in the United States, especially the illegal gambling industry, is massive. ⁴⁸ However, before focusing specifically on the revenue that is already gained in the United States through legal gambling, and the possibility of gaining more revenue through the widespread legalization of baseball gambling, a helpful comparison may be drawn by looking at the effect of legalized gambling in the United Kingdom. In England, gambling “seems to be inherent in human nature.” ⁴⁹ Specifically, sports gambling plays “a significant part [in] the English sports culture.” ⁵⁰ Popular British gambling service Bet365, operating in the United Kingdom where sports gambling is legal, saw a 15% rise in revenue in 2015, which brought their total revenue up to £1.47 billion, or $2.08 billion. ⁵¹ It is important to note that the population of the United Kingdom is significantly lower than the population of the United States. ⁵² The significant amount of revenue gained in the United Kingdom from legal sports gambling, despite a lesser population and with the understanding that sports gambling in the United States is currently a large illegal industry, shows that the legalization of gambling on baseball in the United States would give substantial revenue to the states. The popularity of legal gambling in the United Kingdom shows that the illegal gambling industry in the United States is not an industry that thrives on being illegal. In fact, it is a safe assumption that the total amount of money being spent wagering on sports gambling would increase through the legalization of sports gambling.

In 2015, Nevada sportsbooks earned $231,787,000 in revenue from sports wagers. ⁵³ Wagers on baseball accounted for $39,392,000, or nearly 17%, of this revenue. ⁵⁴ Therefore, wagers on baseball, while not as popular as wagers on football or basketball, make up a significant portion of the total revenue gained by legal sportsbooks in Nevada. The amount of revenue obtained through legal baseball gambling, however, pales in comparison to the amount that could be made if gambling on baseball were made legal throughout the United States through a repeal of PASPA. The revenue brought in by casinos and other bookmaking services through legalized sports gambling could have a tremendous effect on state's revenues and budgets through taxation. Lucy Dadayin, in a report on state gambling revenues, explained that legalized sports gambling would play a “consistently significant … role in state budgets.” ⁵⁵ For example, the tax revenue brought in to Nevada's government through legalized sports gambling accounts for 12.5% of its total revenue. ⁵⁶ Nevada casinos paid approximately $10.4 million in “percentage fee taxes” arising out of wagers placed on sports to the state government. ⁵⁷ While this number may seem relatively small—and even smaller when considering that baseball gambling accounts for an even smaller percentage of the overall amount of revenue brought in through legalized sports gambling—it is important to consider the current budgetary concerns many states have, where any additional revenue would be welcome.

Since the country faced the worst economic collapse since the Great Depression less than ten years ago, states have faced “severe budgetary shortfalls” that have added up to all states facing a combined total of more than $590 billion in budgetary shortfalls. ⁵⁸ As of 2009, “48 of the 50 states are ‘faced [with] real-time or projected funding shortages.’” ⁵⁹ States across the country, from Louisiana to New York to North Dakota to Oklahoma to Alaska, are struggling to balance spending with revenue. ⁶⁰ New York is facing a budget proposal battle that has created “excesses in new spending” such that one state representative stated, “We're going to have a horrible time trying to pay the bills of this state.” ⁶¹ For another example, Louisiana is currently facing a budget crisis that could potentially hurl the state into a major economic crisis. The state is currently facing a $1.6 billion budget shortfall that threatens to impede the government in providing many of the services it currently provides, while also threatening a large increase in taxes. ⁶² States across the country are facing budgetary crises with an increased need for revenue from any and all sources, and legalized baseball gambling is one revenue provider that could help states immensely.

Increased revenue brought in by states through legalized baseball gambling, however small, would undoubtedly assist states in overcoming these dire financial conditions. A tax on baseball gambling would allow citizens who partake in the activity to increase revenue for their state governments while also not affecting the finances of those individuals who have moral issues with gambling. Therefore, the legalization of baseball gambling and a tax thereon would be seen as a boon to the majority of taxpayers who would not be affected by this tax, while still reaping the benefits of increased state revenue.

For a perspective on how lucrative taxation can be in the gaming industry, it is helpful to look at the Chinese province of Macau, an area that has been described as “the gaming capital of the world.” ⁶³ Macau charges a 39% tax on gaming revenue, which led to $8.1 billion in taxes being paid to the province in 2010 alone. ⁶⁴ A high tax rate on revenue generated by private casinos and sportsbooks through the operation of legal baseball gambling could lead to a tremendous increase in state revenue. Even if state governments would shy away from a liberal tax structure like the one Macau currently implements, using a more conservative tax structure like the one used in Nevada would still lead to a significant growth in state governments' revenue. Nevada taxes 6.75% of a casino's “gross gaming win, [or] the amount casinos keep after paying customers' winnings.” ⁶⁵ With the market for baseball gambling being a significant part of Nevada's total amount being wagered on sports, even a less significant tax structure, like the one implemented in Nevada, would undoubtedly lead to at least modest growth in state revenue.

The revenue gained from legalized baseball gambling could also be applied to help baseball-specific tax spending. For example, the Atlanta Braves are in the process of constructing a new stadium that the team will play in after the 2016 season. ⁶⁶ Cobb County has pledged $392 million to the construction of this new stadium. ⁶⁷ Of this amount, $368 million will come from bonds issued by Cobb County and $14 million comes from a transportation sales tax. ⁶⁸ This type of funding structure, in which local and state governments contribute funding to finance the construction of new sports stadiums, requires significant public funding. With the legalization of baseball gambling, state and local governments could tax both casinos and individuals on the money spent and made on baseball gambling. State and local governments could then apply that tax revenue to fund baseball stadium construction, which would serve the double purpose of increasing interest in baseball through the construction of new baseball stadiums and applying the tax revenue made off baseball gambling to a baseball-specific enterprise. This way of spending tax revenue could be beneficial to state and local governments while also increasing public confidence in baseball gambling and the taxes made therefrom. The growth in state revenue that state governments could realize from through the legalization of gambling on baseball is the most important benefit for society as a whole.

Through a partnership with state governments, MLB itself stands to gain substantial revenue from legalized baseball gambling, as well. The first way MLB could gain revenue is through “taxing” casinos' winnings, as well as the winnings of individual bettors. Casinos could obtain licenses from MLB to operate legalized gambling on MLB games. Through these licenses, MLB could effectively implement “taxes” on casinos' winnings. Through a small license fee or tax, MLB could bring in substantial revenue, without seriously impairing a casino's profitability. Also, this type of tax structure would not burden the individual who chooses to gamble on MLB games.

Further, MLB stands to gain revenue through advertisements. In the United Kingdom, gaming companies place prominent advertisements in television broadcasts of soccer matches, including advertisements that “[implore] viewers to place bets on the game they are watching.” ⁶⁹ This type of innovative advertising technique could be implemented in baseball and would be attractive to casinos and sportsbooks attempting to gain more customers. The possibility of MLB gaining substantial revenue from advertising is not mere speculation: one study conducted in 2012 estimated that between $3.5 billion and $4 billion could be spent by online casinos on marketing between 2012 and 2017. ⁷⁰

MLB could also sell its naming rights to popular gambling services, much like the Football League (England's second-tier professional soccer league) did in 2013 when they sold their naming rights to gambling service Sky Bet for an estimated $437,656,500. ⁷¹ Similarly, MLB teams could sell sponsorships on their jerseys for gambling services, as many English soccer teams have done. ⁷² Sponsorship through gambling services is one way in which MLB could profit from legalized gambling in the United States without taking revenue away from governments. Through the legalization of baseball gambling, MLB could tap into this huge pool of advertising revenue in ways that have been previously untested in the American market. The massive amounts of revenue that are available to the government and MLB show why the legalization of baseball gambling will be a benefit to this country.

B. Increase baseball's popularity

The legalization of gambling on baseball will also benefit MLB and even society as a whole by stimulating the popularity of baseball at a time when the sport faces the significant possibility of losing future generations of fans. Baseball is currently a strong national institution. ⁷³ However, baseball's popularity depends largely on an aging audience. ⁷⁴ Baseball's television audience “skews older than that of any other major sport.” ⁷⁵ In 2015, ESPN's annual survey of young Americans' 30 favorite sports figures found no baseball players on the list for the first time ever. ⁷⁶ That the popularity of baseball hinges on an aging population poses a serious problem for the future of the sport. Rich Luker, a sports researcher for ESPN, has stated that baseball may “be moving to a secondary position in American life, doomed to irrelevance like Tower Records or Blockbuster Video.” ⁷⁷

The lack of youth participation in baseball could lead to diminished popularity of the sport in the future. Patrick Wilson, Little League Baseball's senior vice president of operations, stated, “We have seen a decline in participation over the past 12 years, 1 or 2 percent every year.” ⁷⁸ MLB Commissioner Rob Manfred has recognized the link between a lack of participation by America's youth now and the threat of the loss of popularity: “The single biggest predictor of avidity in sports is whether you played as a kid.” ⁷⁹ Lack of youth participation in baseball may be an indication that baseball's popularity will diminish severely in the near future. MLB has attempted to make changes to the game to garner more younger fans' attention, including implementing measures to speed up the game, such as limiting the break between innings and requiring hitters to stay in the batter's box. ⁸⁰ However, football games are, on average, longer than baseball games, which has led many to speculate that the length of baseball games is not the issue for baseball's lack of popularity with the younger population. ⁸¹ The legalization of gambling on baseball could solve baseball's popularity problem by creating increased interest in the game overall, which would attract the attention of younger viewers.

While the legalization of baseball gambling would not be open to youth under 18 years old, this legalization would cause a surge in advertising and attention paid to the game of baseball. The spotlight given to baseball through the legalization of gambling would undoubtedly draw the attention of many not currently interested in baseball. There are, of course, concerns about the impact of legalized gambling: while MLB would see an increase in popularity in the sport, the possibiity exists that the legalization of baseball gambling will “exacerbate the problem of teenage gambling.” ⁸² This policy concern should not be taken lightly by MLB. To ameliorate concern that the legalization of gambling will negatively affect American youth, MLB can and should partner with anti-youth gambling organizations. These organizations, like the YMCA Youth Gambling Organization, aim to create “prevention and education programs to help reduce the potential harm associated with youth gambling.” ⁸³ Legislation legalizing baseball gambling should include an age requirement. Coupled with this legislation, law enforcement can and should step up enforcement mechanisms targeting both underage participants and illegal bookmakers that allow underage gambling. These measures should mitigate the concern that legalized gambling will corrupt the American youth. Undertaking these measures is crucial to the political success of legalized baseball gambling. While the legalization of baseball gambling would not be a complete panacea for the problem of baseball's current decline in popularity, legalization would certainly draw more attention to the game, which would lead to an increase in popularity.

C. Gambling laws are not enforced in the Internet Age

Another reason why baseball gambling should be legalized, beyond the obvious taxation benefits and the potential increase in popularity for the sport, is because current sports gambling laws, while in existence, are not meaningfully enforced. In the Internet Age, it is almost impossible to effectively enforce anti-sports gambling laws, so illegal gambling is widespread—yet the potential taxation benefits of legalized gambling are not seen because of these laws. Sports gambling is a thriving industry that is “popular from the nation's factories to its boardrooms.” ⁸⁴ The massive amount of American citizens' money being spent in the illegal sports gambling market, as much as $380 billion per year by some estimates, evidences this fact. ⁸⁵ This enormous amount of illegal sports gambling shows the ineffectiveness of anti-sports gambling laws. Law enforcement's efforts to enforce PASPA have “declined dramatically” in the past two decades, while the amount of money spent on illegal sports gambling has risen. ⁸⁶ In 1960, nearly 123,000 arrests were made for illegal sports gambling. ⁸⁷ Over 30 years later, only 15,000 arrests were made for the same offense. ⁸⁸ However, while in 1983, only about $8 billion was wagered on illegal sports gambling, that number increased to between $80 billion and $380 billion in 1997. ⁸⁹ These statistics evidence a clear lack of desire by law enforcement to enforce anti-sports gambling laws, despite an overwhelming presence of illegal sports gambling in this country. ⁹⁰

Various hypotheses exist as to why these laws are not enforced. ⁹¹ However, reasons for lack of enforcement are far less important than the fact of non-enforcement, which nullifies the intended effects of PASPA while depriving the public of the benefits of baseball gambling. Commissioner Manfred has gone so far as to state that MLB “should give fresh consideration” to legalizing gambling in baseball. ⁹² Commissioner Manfred's openness to considering legalizing gambling in MLB shows that PASPA's concern for the problems with sports gambling, while present when the law was passed in 1992, are no longer important in today's society. PASPA's intention of eliminating sports gambling is clearly not being effectuated, since illegal sports gambling is a thriving industry in the United States; but because most sports gambling is currently illegal, the benefits of baseball gambling are not being given to state and local governments and MLB. Therefore, PASPA should be repealed to open up legalized baseball gambling in the United States.

D. The main legislative intent of PASPA, the prevention of match fixing, is an inconsequential concern that can be controlled

One of the most important purposes of PASPA was to prohibit sports gambling to “maintain sports' integrity.” ⁹³ The Senate Report for PASPA explained, “Sports gambling threatens to change the nature of sporting events from wholesome entertainment for all ages to devices for gambling. It undermines public confidence in the character of professional and amateur sports.” ⁹⁴ Implicit in the desire to protect the public confidence in the character of professional and amateur sports is the history of gambling in baseball that emanated from the Black Sox scandal in 1919 which “put the game's very survival in doubt.” ⁹⁵ At the core of this need to protect the “integrity of the game” for anti-sports gambling activists is the fear of game fixing. ⁹⁶ However, this policy concern supporting PASPA is inconsequential in modern times for a variety of reasons. Because of the irrelevance of this policy concern as it applies to baseball, PASPA should be repealed to allow states to implement legislation that supports the legalization and regulation of gambling on baseball.

The first reason why the policy concern of game fixing is irrelevant in today's game is because, plainly, game fixing has not occurred in baseball for many years. In the early days of baseball, game fixing was undoubtedly widespread and harmed the integrity of the game. ⁹⁷ The prevalence of game fixing before the Black Sox scandal was primarily due to the fact that “baseball owners and executives took little concrete action to stem the tide of baseball gambling.” ⁹⁸ The failure of baseball to regulate gambling in the sport allowed for corrupt influences to usurp the game, which led to widespread game fixing. In fact, Daniel Ginsburg posits that one of the main causes of the Black Sox scandal was “[b]aseball owners [ignoring] the growing corruption because they felt that negative publicity would damage their industry. This laissez-faire attitude, of course, merely encouraged more corruption.” ⁹⁹ However, after the Black Sox scandal, those in charge of professional baseball adopted an attitude of “constant vigilance against corruption.” ¹⁰⁰ After the negative publicity received by baseball after the Black Sox scandal, and due to rules implemented to stem the tide of the negative influences of gambling on baseball, ¹⁰¹ the Black Sox scandal was the last major game-fixing scandal to ever be connected to MLB. ¹⁰² Furthermore, there has only been one major scandal related to game fixing connected with any of the three major American sports leagues (MLB, NFL, NBA) since the Black Sox scandal: the Tim Donaghy scandal in the NBA in 2007. ¹⁰³ In light of the consideration that PASPA's enforcement mechanisms are rarely used in modern society, the fact that game-fixing scandals have not troubled MLB, or any other professional American sport, suggests that game fixing is not a concern in today's professional athletics environment. ¹⁰⁴

Outside of American professional sports, professional sports in countries where sports gambling is legalized deal with minimal controversies related to match fixing. Soccer is the sport that is most often targeted by the media as being a source of corruption through match fixing by gamblers, players, and referees. ¹⁰⁵ Similar to the concerns about baseball after the Black Sox scandal, match fixing in soccer overseas has been described as “corroding the integrity of the game at every level.” ¹⁰⁶ However, the perceived problems with match fixing in soccer is a matter of perspective. Looking at soccer globally, one would be able to assume that the problem of match fixing is one that threatens the integrity of the sport. However, focusing on the specifics of investigations into match fixing of soccer on the global level reveals a different conclusion: the problems of match fixing in soccer, with over 200 professional clubs worldwide, ¹⁰⁷ are limited to smaller leagues, clubs, and matches and do not effect the top tiers of the sport. In 2013, Europol, a European police agency, discovered evidence of a wide variety of instances of potential match fixing in soccer throughout the world. ¹⁰⁸ Through Operation Veto, Europol found 680 games to be “deemed suspicious” in the years leading up to the publication of the findings. ¹⁰⁹ However, most of these suspicious games were played in Africa, Asia, and Latin America, far from the top ranks of global soccer played in Europe. ¹¹⁰ Europol then shared this information from Operation Veto with countries in the European Union, which resulted in at least 14 convictions of match fixing. ¹¹¹ Despite the perceived threat of global match fixing and what ramifications it may have on soccer as a result of legalized gambling on the sport, “the majority of [match fixing] offenses occur in lower-division and lesser-known leagues.” ¹¹² The lack of serious match-fixing concerns in the major leagues of soccer is evidence that MLB would have minimal concerns about match fixing if baseball gambling was legalized.

One of the main reasons why match fixing occurred in these lower leagues was simple: money. In lower soccer divisions around the world, where players do not make as much money as some of the higher paid players in Europe, ¹¹³ “the money a player can make from match fixing can be far greater than that available to him by playing on the level.” ¹¹⁴ The legalization of baseball gambling would not promote the attraction of match fixing to MLB players that has led to scandals in baseball in the past and lower-level soccer because of the large salaries MLB players currently make. In 1919, the idea of fixing the World Series occurred to Chicago White Sox third baseman Chick Gandil as he and his teammates “grew more and more discontented with [White Sox owner Charles] Comiskey's miserly ways.” ¹¹⁵ Similarly, low-level professional soccer players are paid significantly less compared to the top talents in the world. ¹¹⁶ However, MLB is not straddled with a salary cap and is currently free to pay players as much as each team would like. ¹¹⁷ As a result, top players are paid large sums of money. As of 2016, the highest paid player in MLB is pitcher Zach Greinke of the Arizona Diamondbacks, who will earn over $34 million this season. ¹¹⁸ The average salary of a MLB player in 2016 is $4.38 million. ¹¹⁹ It is wildly inconceivable to believe that a player receiving millions of dollars per year in salary would stand to receive such a large amount of money from fixing a game that would justify taking the risk of receiving punishment from MLB, which could include a lifetime ban. The large salaries currently being paid to MLB players disincentivizes these players from fixing games for monetary gain.

Despite the improbability of match-fixing scandals infecting MLB in a world with legalized baseball gambling, MLB and governments could also implement regulations and procedures to investigate any suspicious activity and punish wrongdoers. Soccer organizations have responded to rumors of match fixing in effective ways to stop the problem. The Fédération Internationale de Football Association (FIFA), soccer's governing body on the world stage, has implemented an “Early Warning System” that is designed to monitor betting patterns in an attempt to identify matches that might be targeted for fixes. ¹²⁰ The Italian Football Federation demoted three teams from one of its leagues in 2006 as a result of a match-fixing scandal. ¹²¹ These concrete actions by soccer's governance bodies show a willingness to act quickly and rapidly in response to match-fixing scandals and the ever-evolving world of online gambling. Soccer's ability to deal with these scandals, coupled with the fact that match fixing does not significantly affect the highest levels of the sport, should be helpful in state governments' and MLB's considerations to legalize gambling on baseball. MLB could partner with casinos and other gambling services to implement an Early Warning System like FIFA's to oversee betting activity and investigate any suspicious betting patterns. MLB currently has sufficient rules in place to discipline players involved in gambling scandals, as well. Rule 21 currently states that an employee of MLB

shall be declared permanently ineligible if he shall promise or agree to lose, or attempt to lose, or to fail to give his best efforts toward the winning of any baseball game … or … shall intentionally lose or attempt to lose, or intentionally fail to give his best efforts … or … shall solicit or attempt to induce any player or person connected with a Club to lose. ¹²²

The improbability of match-fixing scandals infecting MLB, coupled with procedures in place that will snuff out any hints of match fixing and punish any potential wrongdoers, should ameliorate any fears that may arise from legalized gambling on baseball.

A legalized form of gambling on professional baseball will provide incentives for the government, sportsbooks, and casinos that provide legal baseball gambling to scrutinize and weed out any potential for game fixing. As such, legalized baseball gambling would “undermine illegal gambling and the organized crime it supports.” ¹²³ Ciaran O'Brien, the corporate affairs director for British gaming company Ladbrokes, has stated that in England's environment of legal and regulated gambling, “We've built a very strong national business that is very highly regulated and works closely with the government … looking for unusual betting patterns so the sports leagues can investigate.” ¹²⁴ A close nexus between legal betting companies and the government's regulatory agencies, such as the Federal Bureau of Investigation (FBI), will create a relationship that will hinder any attempts at game fixing when baseball gambling is legalized. Evidence of the benefits of this type of relationship has surfaced in the United States. In 1994, the FBI uncovered a point-shaving scandal in college basketball after Las Vegas bookmakers noticed unusual betting activity on an Arizona State basketball game and alerted the FBI to this activity. ¹²⁵ With legalized baseball gambling, sportsbooks would be motivated to “self-regulate to protect the integrity of the business.” ¹²⁶ Apart from self-regulation, the government could have a hand in regulating and imposing liability on sportsbooks for their participation in or negligence in failing to discover connections to game fixing. Sportsbooks operating in a legal gambling market throughout the country, in an effort to avoid penalties imposed due to any association with game fixing, would be encouraged to be proactive in investigating and reporting any suspicious activity associated with bets in their books on professional baseball games. ¹²⁷ Legalized sports gambling, due to the increased efforts of sportsbooks to self-regulate and report suspicions of game fixing to government investigatory bodies, would “rebut Congress's prediction at the time it enacted PASPA: that increased sports-betting activities would lead to more scandal and corruption.” ¹²⁸ Professional baseball would, in fact, be better protected from the possibility of match fixing through a legalized baseball gambling system, ensuring that the game will not be rocked by future game-fixing scandals. As such, the main legislative goal of PASPA, to ensure that professional sports (including baseball) would not be hampered by claims of match fixing, is a goal that is no longer important and will not be hurt by the legalization of gambling, provided MLB and governments implement the kind of procedures and oversight that has been outlined above.