Insider Trading Safeguards Can Mitigate Sports Betting Risk

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May 6, 2026

Insider Trading Safeguards Can Mitigate Sports Betting Risk

Law360

From sports betting to prediction markets, the phenomenon some call "the casino-ification of America" has captured the American zeitgeist. Sports betting in particular has become ubiquitous since the U.S. Supreme Court's 2018 decision in Murphy v. NCAA, which opened the door for states to legalize sports gambling.

Fans can now regularly bet on games and player performances directly from their smartphones. And, as several recent criminal indictments have alleged, some bettors are capitalizing on their access to inside information to obtain an unfair advantage on their wagers.

This article will discuss how, because sports-related inside information continues to become more valuable, organizations including professional sports leagues, governing bodies, college athletic conferences, athletic departments and teams are playing an increasingly prominent role in sports gambling investigations, reflecting their position as central stakeholders in the broader ecosystem.

Next, the article will explore why, in this changing sports environment, stakeholders may look to the corporate and securities context to understand how to manage the risk of disclosing certain nonpublic information.

To continue reading Greg Baker, Chris Wilds, and Vamsi Damerla's article in Law360, click here.

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