NBA and FanDuel online sports betting signage is visible in Phoenix, Arizona. FBI Director Kash Patel announced the arrests of Portland Trailblazers coach Chauncey Billups and Miami Heat player Terry Rozier in an illegal poker ring involving organized crime and cheating. Over 30 people were charged, including former Cleveland Cavaliers player Damon Jones.

Legal licensed sportsbooks in the U.S. are growing, but face challenges expanding. FanDuel, DraftKings, BetMGM, and Caesars are unable to operate in populous states like California and Texas. The news of players engaging in illegal sports betting schemes raises concerns about sports integrity and cheating in the industry.

FanDuel and the American Gaming Association released statements condemning the illegal gambling activities and emphasizing the importance of a regulated legal market. DraftKings highlighted the need for regulated online sports betting to monitor and detect suspicious behavior. Sportsbooks and integrity monitoring companies have helped identify illegal activities in the past.

The sportsbooks’ quick response to illegal gambling incidents could help prevent regulatory crackdowns on player props and parlay bets, which are profitable for the industry. Despite negative headlines, the situation could lead to more enforcement against unlicensed operators, potentially benefiting commercial and tribal casinos in the long run. Illegal gambling in the U.S. is estimated to generate $674 billion in wagers annually.

Read more at CNBC: NBA gambling scheme puts sportsbooks on the defense