Former NBA commissioner David Stern backs a federal sports betting regulation

Former NBA commissioner David Stern was the keynote speaker at a symposium at Elon University on Tuesday, titled “Sports Betting: The Industry’s Next Frontier”, to discuss the impacts of legalizing sports betting, which North Carolina is in the process of doing. Stern said the risk of corruption is greater with college sports than with professional sports.

Stern explained his role in growing the NBA to what it is today and watching now as the basketball league supports the legalization of sports betting. “I think that college kids can be more easily influenced,” Stern said, referencing point-shaving scandals in college sports. “Especially in potentially corrupt cultures.”

Senate Bill 154 would allow casinos run by Native American tribes in North Carolina to offer betting on college and professional sports, as well as horse racing. There are two casinos in North Carolina that will receive the bill’s benefits. Both are in the western part of the state and owned by the Eastern Band of Cherokee Indians.

A number of ACC (Atlantic Coast Conference) states have been considering proposals to legalize sports wagering. ACC Commissioner John Swofford said in the summer of 2018 that the conference would look into its potential impacts. In addition, North Carolina athletic director Bubba Cunningham previously stated that UNC (University of North Carolina) opposes gambling on college sports.

Stern now sees the potential for raising interest and believes legalizing sports betting will create business and opportunities for players, sports leagues, sponsors and teams. “It’s good for the sports, it’s good for the teams and it’s good for the players,” Stern said. He warned against allowing betting on individual players, though, saying this could lead to scrutiny of each player’s move after the game. He hopes betting will focus on teams as a whole and certain safeguards will be put in place.

“(Sports betting) has its risks. But we will get past them” - David Stern. #ElonSMS19 pic.twitter.com/m9BrURNzwz

— Elon Communications (@eloncomm) 23 de abril de 2019

Along with safeguards for betting, Stern said there will need to be in an increase in security. “Information is king," Stern said. "Anything a player might know about an injury or a trainer or a coach that could change a game will be worth money.” Because of this, Stern said enhanced vigilance is something that will appear at games and in locker rooms.

Rulings on the court and on the field will need to be called with even more accuracy and attention. Stern sees betting leading to enhanced replay opportunities. “The problem with referees is that they are human — they are less than perfect,” Stern said

Furthermore, Stern said he was in favor of creating a uniform system regulated by the federal government with safeguards in place. He said he sees a lot of risks with states regulating their own programs. “My biggest concern was that — it depends who the state or what agency the state puts in charge of it,” Stern said, as reported by the Raleigh News & Observer. “State by state is going to be challenging in terms of running it.”

Stern served as the NBA commissioner for 30 years before retiring in 2014. He is often credited with helping to increase the popularity of the NBA during the Michael Jordan era. Under Stern, the NBA dealt with a betting scandal of its own after the FBI discovered in 2007 that one its referees, Tim Donaghy, bet on NBA games. During his time as commissioner, Stern testified against the legalization of sports betting, but since leaving his role, he has grown to accept betting as a future for the industry.  

Stern said he does not believe there will be an increase in scandals with the legalization of wagering on sports, but it remains a problem. “Corruption is corruption,” Stern said. “It’s going to continue. Whether it’s legal betting or illegal betting, the risks are still the same. And I think the legalization of it, in some respects, is going to make the leagues more vigilant and more sensitive.”

Stern said sports betting will continue to change the way sports are consumed. Spreads will become more and more important, and as a result, the scrutiny of players and officials will increase, he said. “I think it’s great for business. I think it has its risks and issues, but I think the league will get past it in a good way,” Stern concluded.

Stern’s address was the keynote presentation at Elon’s first Sport Management Symposium. The event also featured two-panel discussions with leaders in sports industries, including NASCAR and the PGA Tour, as well as North Carolina state representatives.