Is the fix in for the Ultimate Fighting Championship?
Nearly six weeks ago, the sports world was rocked with yet another potential betting scandal when Isaac Dulgarian, a major favorite in his featherweight bout with Yadier del Valle, was choked out in the first round. The upset win for Yadier del Valle set off alarm bells after there was suspicious betting activity placed on the bout prior to the event. As with any reputable gambling operation, there are outside agencies that ensure the integrate of wagers as a way to protect betters and the organizations themselves. Post-fight, Dulgarian was released from his UFC contract, and Dana White confirmed to media outlets that the promotion was cooperating fully with the FBI. Dulgarian’s fight purse was withheld, pending an ongoing investigation.
Unfortunately, this isn’t anything new for the fight game or even anything new for the current news cycle, as betting scandals have hit both the NBA and MLB in recent months. Portland Trailblazers coach Chauncey Billups was arrested in connection with rigged poker games that were backed by alleged organization crime groups. The initial report suggests that Billups wasn’t involved in bets on games that he coached. However, the problem is rather simple, if Billups gets in debt to the mob, it’s easy to see a situation where he could tailor his coaching decisions in a manner that could clear his tab with the organization. Miami Heat point guard, Terry Rozier finds himself in significantly hotter water, as he doesn’t have the weak layer of plausible deniability that Billups might be able to use to attempt to shield himself from any direct wrongdoing. There were several prop bets made on Rozier’s performance for certain games so when he left a game with a foot injury, it essentially ensured the under wager was going to be able cash out. Rozier remains on unpaid leave from the Heat, and his salary has become a legal proceeding of its own, as there will be an upcoming hearing to determine if he should be paid while the gambling case is still pending. Despite the original story making headlines in late-October, the FBI investigation is still very much an ongoing process, with The New York Times reporting just this week that cell phone records from multiple teams, including the Los Angeles Lakers, are being requested as authorities continue to gather more information about the case. Reportedly, there were already more than 30 arrests made in connection with the gambling scandal, but who knows how far this will reach when the dust clears?
Just last month, Cleveland Guardians pitchers, Emmanuel Clase and Luis Ortiz were both indicted on a slew of charges related to rigged prop bets for the pitches that they’d throw at a certain point. Both have plead not guilty, but remain on leave from the team until the legal action is resolved.
As much as this makes scandalous headlines and it’s definitely surprising, it shouldn’t truly be shocking. There have been attempts to rig sports bets as long as there has been action taken on the games, fights, etc. Maybe Shoeless Joe needed the extra payoff to finally buy a pair of sneakers? There were senate hearings in 1960 about boxers taking a dive for the mafia in exchange for cash and future opportunities.
The problem itself remains the same, but the relatively new technology that has allowed sports gambling to grow exponentially has shifted the paradigm.
Much like everything else, smart phones and the internet have completely changed online gambling. You can play slots, blackjack, roulette, or place a bet without leaving your house. If you want play a few hands of poker while doing laundry, it’s literally only a few clicks away. The real-time technology opens up the possibility for more prop bets like the pitching accusations against the Cleveland players. Online gambling is a billion dollar business, and to keep that revenue stream, federal agencies are going to regulate it.
It’s not just cash for the online corporations that allow casino games and sports books that take bets, it’s the advertising involved that brings more money to the leagues themselves. The bottom line is, the federal government passed the legislation to clear the way for legal gambling online in many states in recent years because of the tax revenue from it. Once the sports leagues saw the writing on the wall, they partnered with many of the platforms so that basically everyone gets a piece of the pie, directly or indirectly. There’s a reason that Fan Duel, Draft Kings, and ESPN Bet get their logo plastered all over the place at sporting events.
For the UFC, the company under the TKO banner is about to embark on a completely new chapter, a situation that will bring more fights to more fans than any other time in the more than 30-year history of the organization. After years of being one of the only remaining commodities to generate significant revenue through traditional pay-per-view, the MMA league will switch to a bulk-pricing model after the staggering $7.7 billion deal with Paramount. The UFC pay-per-view, events that had a price tag of $79.99 after fans had to pay to subscribe to ESPN+, will be available with a $7.99 Paramount+ subscription at no extra charge. In theory, the UFC will be more accessible now than ever before. That’s a chance to make new stars through the expanded exposure, and of course, more bets to be made on more fights, from the gambling side of things.
That’s why while it remains to be seen how all of this shakes out, even if Isaac Dulgarian is found to have been involved in taking a bribe as it appears that he was, the UFC will continue to keep it’s business above board. The reason being is that there’s literally billions of dollars at stake for the TKO corporation, they aren’t going to risk the credibility of their MMA empire, especially for a sport that they’ve promoted as legitimate, for a fighter that is small potatoes in the grand scheme of things. Obviously, it would be easier for a lower-tier fighter to be influenced to take a dive because the promotion notoriously underpays most of its roster. So, again, it was surprising, but not shocking when Ariel Helwani reported that after the Dulgarian story broke, he was contacted by dozens of fighters that said that they were at least approached in the past by gamblers that asked if they would considering throwing a fight for the right price.
I waited to cover the Dulgarian scandal to see what exactly, if any, the ramifications were going to be from the story before the move to Paramount. In truth, it’s much to do about nothing, which is actually the best case scenario. Regardless of the outcome of the investigation of the featherweight fighter, the story itself actually proves that the safeguards that are in place work. Betters can be assured that if anything unusual is going on with the wagering process that the regulation agencies will detect it. Fighters have taken dives before and will probably attempt to take dives again for the right price, but the amount of times it will happen in the big picture will be minimal. The reason being is that they would risk throwing their career away for the short-end money. The circumstances around the Dulgarian are such that even if there isn’t enough evidence to pursue the case beyond his dismissal from the UFC, he’s persona non grata in the sport going forward.
Assuming that this can be dealt with as an isolated incident, it will be business as usual for the UFC, as the company will start its previously mentioned seven-year contract on Paramount, but the biggest takeaway from this situation is how it might impact the regulation of the sport itself. For example, in light of the MLB pitching scandal, most sports books have placed a $200 limit on prop bets for pitches. Could there potentially be a limit placed on certain possible outcomes for UFC fights? That could theoretically limit the amount of overall revenue generated. Either way, it’s a fascinating dynamic because as mentioned, as long as bets have been taken on sports, they have been attempts to influence them so it will be interesting to see how the organization continue to adjust to the evolving online betting landscape.
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Until next week
-Jim LaMotta
Email [email protected] | You can follow me on Instagram, Facebook, & Threads @jimlamotta89
