MLB Cracks Down On Micro-Bets, Announces Limits On Pitch Wagers
MLB just tightened the screws on sports betting with new plan
Days after the U.S. Department of Justice dropped the hammer on two Cleveland Guardian pitchers in a live betting scandal, Major League Baseball announced Monday it is taking action to protect the sport.
Guardians closer Emmanuel Clase and starter Luis Ortiz potentially face 65 years in prison on a slew of charges relating to "first pitch of an inning" bets. MLB Commissioner said Monday that baseball is working to "ensure we are always protecting the integrity of our game."
Read: DOJ Indictment Of Cleveland Guardians Pitchers Clase, Ortiz Reveals Shocking Details
(On Monday, MLB Commissioner Rob Manfred announced sweeping new rules for live betting that will be implemented at sportsbooks in the United States. Brad Penner-Imagn Images)
The first step, MLB says, is to limit live betting wagers, specifically pitching live bets.
"Effective immediately, all MLB Authorized Gaming Operators will cap wagers on pitch-level markets at $200 and exclude those bets from parlays. These new measures—implemented across sportsbook operators representing more than 98% of the U.S. betting market—are intended to mitigate integrity risks, and maintain the transparency and data access benefits that the regulated sports betting market provides," the league announced.
The DOJ alleges that bettors won "at least $450,000" due to Clase and Ortiz's first pitches, which were thrown with intent to win first pitch bets. "In some instances, the defendants received bribes and kickback payments—funneled through third parties—in exchange for rigging pitches," the DOJ wrote in its indictments.
MLB says the new safeguards at sportsbooks will protect the integrity of the game.
"Most prop bets present limited integrity risk because they take into account multiple events that are influenced by more than one actor. However, ‘micro-bet’ pitch-level markets (e.g., ball/strike; pitch velocity) present heightened integrity risks because they focus on one-off events that can be determined by a single player and can be inconsequential to the outcome of the game," MLB continued.
"The risk on these pitch-level markets will be significantly mitigated by this new action targeted at the incentive to engage in misconduct. The creation of a strict bet limit on this type of bet, and the ban on parlaying them, reduces the payout for these markets and the ability to circumvent the new limit."