NBA's Gambling Disgrace

by John M. Curtis
(310) 204-8700

Copyright July 24, 2007
All Rights Reserved.

aught with his hand in the cookie jar, National Basketball Association referee Tim Donaghy is currently under investigation by the FBI for betting on games in which he officiated. NBA commissioner David Stern expressed his shock and horror at a much-awaited news conference, insisting he believes Donaghy represents a rogue official, unlike all others. Calling his betting “an act of betrayal,” Stern admitted this was the “worst situation” in his 40 years with the league. “We think we have a rogue, isolated criminal,” said Stern, denying rumors that Donaghy represents the tip of the iceberg in a league known for Las Vegas or offshore betting. Without proof, Stern tried to reassure the press that Donaghy acted alone, despite allegations in the New York Post indicating that he worked with low-level organized crime to affect the outcome of games, namely, the point-spread.

      Stern ignored the inescapable truth that Las Vegas and offshore betting is rampant on NBA games. Billions are bet on professional sports in casinos in Las Vegas, Atlantic City or offshore, in numerous casinos spread over the Bahamas, Caribbean, Central and South America. It was only a matter of time before insiders were uncovered betting on professional sports. Not too long ago, baseball legend and all-time hit leader Pete Rose, former NBA power-forward and basketball analyst Charles Barkley, big-hitting golfer John Daly and NBA Hall-of-Famer Michael Jordan all bet on their respective sports. Rose was banished from baseball for reportedly betting on games as a player and manager. Never before has a referee been accused of betting on games and manipulating the point-spread. While Stern wants to dismiss Donaghy as a fluke, there's too much gambling to believe otherwise.

      FBI officials admitted to investigating Donaghy for over two years, covering 68 games in 2005-06 and 63 in 2006-07, including 20 playoff games. “This is the most serious situation and the worst situation that I have ever experienced either as a fan of the NBA, lawyer for the NBA or commissioner for the NBA,” said Stern, ignoring the possibility that Donaghy is not a freak problem. If Stern really believed Donaghy were a fluke, the NBA wouldn't consider a plea deal currently sought by his attorney, John Lauro. Over the past two years, Donaghy worked 139 regular-season games, eight playoff games and four preseason games, earning $260,000. That figure wouldn't support the extravagant lifestyle in West Chester, Penn. From 2005, the NBA investigated allegations that Donaghy bet on NBA games in Atlantic City and possibly Las Vegas, prompting disciplinary action.

      Las Vegas and offshore sports betting has reached pandemic proportions, spurred in no small part by the NBA. Stern must accept some responsibility for the culture that finds it chic to allow the NBA to be one of the most popular venues for sports betting. Stern ignored two years of reports indicating that Donaghy had a compulsive gambling problem, prompting the NBA to conduct a formal investigation. Yet the NBA took no action against him other than banning Donaghy from officiating the second round in the 2005 playoffs. Had it not been for the New York Post, the NBA would have done nothing, fearing an escalating public relations disaster. Stern admitted to conducting annual background checks on referees during the 2004-05 season, yet took no action on Donaghy for placing numerous bets. Donaghy has been accused of calling late fouls affecting the eventual point spread.

      NBA fans want to know that the commissioner is up to speed of policing the sport, including dealing with renegade officials and players. Allowing referees to bet on games in which they officiated goes beyond “betrayal,” as Stern put it, to outright larceny. While Donaghy enriched himself, honest fans, betting in Las Vegas and offshore, watched their bets go up in smoke. Not because the bets were bad but because at least one official manipulated the game. “We are going to maintain confidence of our fans and regain the confidence of those who may be shaken, as we are,” said Stern, avoiding the fact that he sat idly by while predators, like Donaghy, fleeced the system. Now that Donaghy is busted, Stern and other NBA officials act as if they did everything possible to prevent the illicit activity. Stern must ask himself honestly who fell asleep at the switch?

      Instead of acting so shocked, Stern must explain why, after investigating and disciplining Donaghy in the ‘05 playoffs, did the NBA do nothing? NBA officials were aware of Donaghy's gambling problem, well before the New York Post finally broke the story July 20. Stern wants to get to the bottom of this but doesn't want to accept responsibility for acting indecisively once they knew Donaghy had a compulsive gambling problem. Like the steroid scandal in Major League Baseball, Stern wants a plea bargain to put a lid on more PR damage. If he doesn't deal with Donaghy's attorney, the former NBA referee will sing like a canary. More than preventing gambling by NBA officials in the future, Stern wants to control the fallout from Donaghy's criminal behavior. Whether there's denial in the front-office, Stern must deal with the NBA's gambling problem.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.


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