NBA Players, Executives Barred from Investing in Sports
NBA Players, Executives Barred from Investing in Sports: NBA players are disobeying league regulations in order to get a piece of the action in the booming sports betting industry, which has made their teams millions of dollars.
According to information obtained from sources within the NBA, the league makes it illegal for its current players to participate in, support, or promote any business that involves NBA wagering in any way.
This prohibition applies to all of the staff members, including coaches, officials, referees, and staff members, who are actively involved in the gameplay. A source familiar with NBA rules said that the team governor, which is a rebranding word for a team owner, is allowed to acquire sports betting stocks. However, they are prohibited from having any involvement in the betting activities of the NBA.
After the sports betting firm DraftKings bought its investment in Golden Nugget Online Gaming in 2021, Tillman Fertitta, the governor of the Houston Rockets, was able to acquire $700 million worth of DraftKings shares thanks to an exception.
NBA
In the upcoming NBA season, five different clubs will have sportsbooks located within their arenas, while the rest of the league will benefit from over 41 different betting sponsorships. According to the collective bargaining agreement of the NBA, players are entitled to approximately half of the league’s gambling-related earnings; however, there is no mention of any investment limits in the agreement.
Recent regulation changes in Major League Baseball have made it possible for players to accept endorsement deals with bookies. According to sources within the league, even though the NBA has not had to deal with any breaches as of yet, there are mounting challenges for both the organization and the players.
Underdog Fantasy, which counts Kevin Durant, Trey Young, and Mark Cuban among its investors, recently revealed its intention to launch sportsbooks in multiple states in the upcoming year.
These investments were made public by Underdog inside the same press release in which the company declared its intentions to “produce newly licensed sports betting products.” The underdog did not respond to requests for comment.
Statements
According to the Colorado Division of Gaming and the Ohio Casino Control Commission, the company has submitted applications for licenses in both states of Colorado and Ohio.
According to various sources, the National Basketball Association (NBA) is “watching” the situation; nevertheless, it is unclear how the league would know who is in violation of its policy until more companies declare their investors.
According to Adam Stephens, a senior portfolio manager at Advisory Research, a financial planning organization that specializes in gambling companies, “It is impossible to collect this information.” “There isn’t any kind of database. In the event that they do not wish to reveal this information to their investors, you will never find out.
As the business as a whole continues to expand, sources within the league have stated that the prohibition on betting on sports is part of “ongoing conversations between the NBA and the NBA Players Association.”