The baseball world was rocked this week by news that the interpreter for Los Angeles Dodgers sensation Shohei Ohtani had allegedly lost millions of dollars to an illegal sportsbook, and that Ohtani allegedly had paid off his debt. Here's a look at some of the laws involved with sports gambling in the United States, and the rules that cover Major League Baseball players and team employees.
According to ESPN and the Los Angeles Times, interpreter Ippei Mizuhara's name surfaced in connection to a federal investigation of an alleged illegal bookmaker, Matthew Bowyer. A statement from Ohtani's spokesman mentioned "a massive theft" from the baseball sensation after at least $4.5 million in wire transfers were sent from an account belonging to Ohtani to a Bowyer associate. Mizuhara told ESPN that Ohtani sent the money to cover Mizuhara's gambling debts, but Ohtani's representatives later disputed that story to include the theft allegation.
The Dodgers fired Mizuhara on Wednesday. The interpreter, who has been with Ohtani since before the Japanese slugger joined the Los Angeles Angels in 2017, told ESPN he had received an annual salary of between $300,000 and $500,000.
In 2018, the U.S. Supreme Court ruled that the federal law that limited sports gambling to just a few states was unconstitutional, opening the doors for any state to legalize it. Since then, 38 states and the District of Columbia have legalized sports gambling, with six more considering it.
The Federal Wire Act, which was signed into law by President John F. Kennedy in 1961, remains in effect. The law prohibits the use of wire communications for interstate sports gambling, and is seen as the reason sports gambling is under the purview of states and not the federal government. For instance, someone in Pennsylvania may bet on sports through companies approved by the state but cannot legally place an online bet through sportsbooks regulated in any other state.
California is one of the states that has yet to legalize sports gambling, and it's the nation's largest untapped gambling market. In 2022, two ballot initiatives -- one that would have legalized online sports betting and another that would have legalized retail sports betting at casinos run by the state's Native American tribes -- failed to pass after costly campaigns, and it does not appear that legalization will happen anytime soon.
Major League Baseball players, umpires, officials and employees are forbidden from gambling on baseball games. They are allowed to place bets on other sports, but not with illegal bookmakers. Anyone who bets on a baseball game with which they are not involved faces a one-year suspension, while anyone who bets on a game in which they are involved faces permanent suspension, as happened to MLB career hits leader Pete Rose in 1989.
Players, umpires, officials and employees who are caught placing bets on other sports with illegal bookmakers are subject to punishment determined by the MLB commissioner.
Mizuhara told ESPN his bets were on international soccer, the NBA, the NFL and college football.
"I never bet on baseball," Mizuhara told ESPN. "That's 100 percent. I knew that rule. ... We have a meeting about that in spring training."
In 2015, Miami Marlins pitcher Jarred Cosart was fined by the league for making illegal bets. MLB said it had no evidence that Cosart bet on baseball. The amount of the fine was not announced.
Every league establishes its own regulations about player conduct.
NFL: During the regular season, NFL players cannot bet on any league game. If they are working at the team facility, they are prohibited from betting on any sport. Players also are prohibited from entering brick-and-mortar sportsbooks during the season. NFL players who are caught betting on games involving their own teams face a suspension of at least two years, while bets made on other NFL games can incur a suspension of at least one year. Before the league changed its punishment structure in September -- increasing the potential punishments for betting on the NFL while reducing the penalties for betting on other sports at team facilities -- 10 players had been punished for violating the policies.
NBA: Players and employees cannot bet on league games, though betting on other sports is allowed. Punishments for violations of league gambling rules include fines, suspensions and possible termination of contracts.
NHL: Gambling on pro hockey games is off-limits for NHL players and employees, though they can bet on other sports. Anyone found to have violated that rule faces a fine, suspension or termination of contract, as determined by the league commissioner.
Sportsbooks that are not licensed by a state are illegal under a number of federal laws, as detailed by the American Gaming Association, including the Federal Wire Act, the Illegal Gambling Business Act, the Travel Act and the Unlawful internet Gambling Enforcement Act.
Federal gambling laws target the operators of illegal sportsbooks. No federal laws prohibit U.S. citizens from using them to place wagers, though several states, including California, have laws against placing sports bets of any nature. Other states have laws prohibiting their residents from betting with anyone not licensed by the state. Federal laws prohibit banks from knowingly allowing transactions involving illegal sportsbooks.
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