The Michigan Gaming Control Board (MGCB) has announced new measures to strengthen oversight of sports wagering following federal indictments that revealed a major betting and poker scandal involving current and former NBA players and coaches. The charges, which federal investigators linked to organized crime groups, highlight a widening concern about the use of confidential player data and manipulation of proposition wagers, known as prop bets.

Regulatory Safeguards Reinforced

In a statement released this week, MGCB Executive Director Henry Williams said the agency is intensifying efforts to prevent corruption and protect consumers through proactive monitoring and regulatory controls.

“The integrity of sports betting in Michigan depends on more than enforcement — it requires proactive safeguards designed to detect and deter misconduct before it occurs,” said Williams. “We’ve built a regulatory structure that prioritizes transparency, accountability, and consumer protection.”

The Board’s current integrity framework includes several mandatory measures for all licensed sports betting operators. Every operator must participate in an integrity monitoring program to identify and report suspicious betting activity. Additionally, all events and wager types must be reviewed and approved by the MGCB to ensure compliance with state standards. Bets deemed highly susceptible to manipulation—such as those involving officiating decisions—are strictly prohibited.

Michigan law also criminalizes insider betting and the use of nonpublic information to influence wagering outcomes. Operators are required to have systems in place that prevent athletes, coaches, and officials, or anyone with privileged access, from placing or facilitating bets on related events. The Board has emphasized that manipulating or attempting to manipulate any sporting event for personal gain is a prosecutable offense under state law.

Recent developments have drawn attention to the potential risks tied to player proposition wagers, which allow betting on specific player statistics rather than final scores or team results. These bet types, regulators warn, are especially vulnerable to misuse when inside information or player cooperation is involved.

“Certain types of prop bets present a higher risk of manipulation, particularly when tied to insider knowledge or player behavior,” Williams explained. “As regulators, we must assess whether current safeguards are sufficient or if additional restrictions are necessary.”

According to the MGCB, these concerns have prompted a full review of how prop bets are structured and approved in the state, ensuring that the market remains both competitive and secure.

Combating Illegal Gambling

Alongside its renewed oversight of licensed operators, the MGCB continues to warn the public about the dangers of unregulated gambling. Illegal betting platforms, the agency noted, often operate without transparency or consumer protection measures and are frequently used to exploit players through unfair practices or fraud.

“Illegal gambling undermines public trust and puts Michigan residents at risk,” Williams said in the regulator’s press release. “We remain committed to disrupting these operations and educating the public about the benefits of betting legally and responsibly.”

The Board has urged residents to wager only with licensed operators and to seek help if they suspect a gambling problem. The National Problem Gambling Helpline remains available at 1-800-GAMBLER, via text at 800GAM, or through its website.

As the federal investigation continues, the MGCB has stated that the findings will help shape future regulatory adjustments. Officials say the goal is to ensure that legal wagering in Michigan remains fair, transparent, and resistant to exploitation by criminal networks.

“This case is a wake-up call for the entire industry,” Williams concluded. “We must remain vigilant, adaptive, and committed to protecting the integrity of the game — and the safety of those who enjoy it.”