The Michigan Gaming Control Board (MGCB) is strengthening oversight of sports betting after federal indictments implicated NBA players and coaches in organized crime-linked betting schemes.

Federal authorities have tied the scandal to organized crime, alleging misuse of confidential player information, manipulation of proposition wagers (“prop bets”), and involvement in an illegal mafia-backed poker cheating ring.

The developments highlight the ongoing need for strong regulatory frameworks to prevent fraud and protect consumers, the regulator said.

“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 MGCB Executive Director Henry Williams. “We’ve built a regulatory structure that prioritizes transparency, accountability, and consumer protection.”

The MGCB has implemented several measures to maintain the integrity of legal sports betting in Michigan. All licensed operators are required to participate in an integrity monitoring program to detect and report unusual or suspicious betting patterns. The board also reviews and approves all events to ensure compliance with Michigan’s standards, and it prohibits certain wagers, such as bets on officiating decisions, due to their high risk of manipulation.

Operators must prevent wagering by anyone with access to nonpublic information, including players, coaches, and officials, as manipulating event outcomes or using insider information for betting is a criminal offense under Michigan law. In addition, operators are required to maintain robust internal controls designed to prevent and detect fraud.

The MGCB said it is particularly focused on player proposition wagers, which were reportedly exploited in the recent scandal.

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

The board also continues to caution the public about the dangers of illegal gambling, which operates without oversight or consumer protections. Illegal operators often evade taxes and exploit vulnerable individuals.

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

As the federal investigation unfolds, the MGCB said it will use emerging details to inform future regulatory actions and strengthen the state’s sports betting framework.

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