Oct 24, 2025

I recently learned about the arrest of 30 individuals, including NBA players and coaches, across 11 states in two separate criminal schemes related to illegal sports betting. One of the indictments charged six defendants with a fraud scheme involving the betting on nonpublic information about NBA athletes and teams. The defendants allegedly misused information obtained through friendships with NBA players and coaches, including threatening Toronto Raptors forward Jontay Porter for information due to his gambling debts. They participated in a scheme to defraud betting companies by using non-public information to place fraudulent sports wagers for profit.

The defendants had access to private information known by NBA players or coaches that could affect the outcome of upcoming NBA games or players’ performances. They made false statements to the betting companies, violating the terms of use that prohibited wagering based on non-public information. This case highlights the issue of insider betting being considered a crime when it breaches a sportsbook’s rules. Separately, Elon Musk, the world’s richest person, made headlines by pushing for approval of his $1 trillion pay package during Tesla Inc.’s earnings call. He emphasized the need for voting control to have a strong influence without losing absolute control, sparking controversy and drawing criticism from shareholder advisory firms.

Elon Musk’s comments regarding building a robot army and the possibility of being ousted due to recommendations from ISS and Glass Lewis have sparked discussion about the implications of a trillion-dollar project led by the world’s richest man. While some find the idea intriguing, concerns have been raised about the checks and balances in place.

The world of gambling has seen a surge in sports bets on platforms like DraftKings and FanDuel, with an average of close to $1 billion a week in 2024. Prediction markets like Kalshi and Polymarket have also experienced increased volumes, particularly during the US presidential election. This rise in trading activity suggests a growing interest in these platforms for betting on real-world events.

The convergence of sports betting and prediction markets has attracted mainstream financial institutions like Robinhood, raising questions about the regulatory environment surrounding these activities. Despite the increase in trading volumes, it is essential to approach this trend with caution and consider the implications of financial institutions entering the sports betting space through prediction markets. Trading volume on prediction market platforms has surpassed $2 billion for the first time, driven by the popularity of sports betting on platforms like Kalshi. The return of college football and the NFL season has contributed to this surge in activity, with bets on various categories seeing significant trading volumes. Additionally, the National Hockey League has entered licensing agreements with prediction market startups, marking a new chapter in the use of sports league trademarks in prediction markets.

Stay Well!