The concept of proposition betting, or prop bets, has been in the news a lot lately, namely involving professional athlete sports betting scandals and organized crime. For most of the population, knowledge on the subject is limited at best, leaving little insight into how problematic a seemingly harmless way to wager on something really can be. What are prop bets and why do they pose a threat to vulnerable Americans? Read ahead to learn more.
Overview of Prop Bets and How They are Fueling the Problem Gambling Crisis in America
Types of Prop Bets
Unlike with moneyline or point spread wagers, typical prop bets are types of wagers on parts of a game or sporting event that do not directly relate to the final win/loss outcome. They have been created by sportsbooks and daily fantasy sports (DFS) operators to offer a wider variety of in-game and cross-sport betting opportunities. The popularity of prop bets has grown to encompass many different elements through the years, especially since the federal ban on sports betting was lifted in 2018. Below is a look at the types of prop bets available today.
Player Props
What are player props? These are prop bets that permit bettors to wager on statistical outcomes for a given player in a sporting event. In the NFL or NCAAF, player props may relate to the over/under on the number of completed yards thrown by a QB or made by a receiver. In the NBA or NCAAB it could be an over/under on player’s total points scored or offensive rebounds. In the MLB a bettor might wager on how many hits or how many total bases a player will get. If it’s something that can get added to a player’s game stats, it can essentially become a prop bet.
Game and Sporting Event Props
While prop bets generally do not directly relate to the final win/loss outcome of a game or sporting event, they can be tied to it. A prop bet of this nature may be for whether or not there will be an overtime or what the over/under on the total of 3-pointers made in an NBA/NCAAB game. In addition, sportsbooks release novelty bets regarding what color of gatorade will be poured over the head of a coach after winning a conference final, and so forth.
Entertainment and Pop Culture Props
Entertainment and pop culture props are released to the American public by unregulated operators. They range from lighthearted wagers such as which Hollywood star will win the next Oscar for Best Actor to incredibly crass ones, including betting odds on the outcome of a well-publicized murder trial.
Political Props
Political props are a strain of pop culture wagers released by unregulated operators that pertain to the outcomes of state and federal elections along with the actions of politicians.
Other Props
Unregulated operators release betting odds on a wide variety of other outcomes that have nothing to do with sports. These props can relate to everything from the number of Category 3 hurricanes occurring on the eastern seaboard in the span of 3 months, to whether or not a ceasefire will be called on an overseas war within a specified date range.
Are Prop Bets Legal?
Some, not all. Player props and prop bets directly related to in-game occurrences are generally permitted in U.S. states with legal sports betting. The rest (entertainment, pop culture, politics, and other non-sport events) are offered to Americans on the unregulated market and are typically illegal, even though little to nothing is done by regulators to subvert it. Nearly 90% of sports betting in the U.S. is done through the unregulated market.
It’s important to note that player props are currently a contentious topic among elite leagues and organizations. For instance, the NCAA is calling on regulators to ban player prop bets to protect both athletes and the integrity of sport. More on this in the final section below.
How Prop Bets Put Vulnerable Americans at Risk
Proposition odds are a lot of fun to bet on for millions of Americans. However, their existence is extremely problematic for anyone who has a vulnerability to developing gambling disorder. Yes, there’s the fact that they add yet another type of wager for a problem gambler to enter into their betting tickets, but that just scratches the surface. You see, prop bets introduce gambling to a whole new group of people who normally may not care to bet on sports. Prop bets on sports are easier for them to digest than confusing point spreads and parlays that require more education and some element of knowledge and skill. Meanwhile, proposition odds on entertainment, politics, and pop culture are relatable to an even wider group of Americans. And even though it’s directly related to sports, props on the Olympic Games are another example how they attract untraditional sports fans, as their wagers can be fueled more by patriotism than fandom. What prop bets do is create a new population of gamblers that may not have otherwise gotten involved in the activity. Consequently, a gamble on everything culture has been allowed to grow across the country. This can increase the volume of problem gamblers in a country where they account for about 2% of the population.
Lastly, and as alluded to above, prop bets allow illegal bookmakers to get a leg up on regulated operators by offering Americans the unfortunate opportunity to bet on practically anything. State and federal regulators do not have the resources to adequately watchdog all these illegal bookmakers, and so they continue to operate with relative impunity.
How Prop Bets Put Vulnerable Athletes at Risk
This is a known concern that has come to light since the proliferation of legal sports betting in the United States. Professional athletes, who are more vulnerable to problem gambling than the general population, are placed in a tumultuous position by the allowance of prop bets.
In that past, compromised players may or may not be in a position to have a final and direct impact on the moneyline or point spread outcome (via point shaving) of a game. But with player props, they can directly control any outcome that is based upon their own statistical performances. This puts power in the hands of compromised athletes to affect sports betting markets. A player can either bet on a prop bet regarding themselves, or tell another party to make the bet, and then alter their performance to ensure that they wager goes in their favor. In some cases, outside fraudsters and organized criminals can force an indebted (due to gambling) player to intentionally underperform to ensure a given outcome. This is allegedly the case for NBA player Jontay Porter who, along with four alleged criminals who orchestrated the scheme, leveraged the player prop market to potentially earn millions of dollars. Before being permanently banned from the NBA, Porter was essentially a backup player making just over $400,000, which exposes another potential vulnerability. There is some evidence to suggest that benchwarmers and substitute players may be the most at risk of player prop markets.
Concerned About Your Relationship with Sports Betting?
CALL +1 (877) 426-4258
OR
Email [email protected]
