Historic Gambling Prosecution

Welcome back to the Bandit Betting Newsletter, where we deliver the top stories in sports and gambling directly to your inbox, every Sunday.

In today's email:

• Deep dive: the historic Iowa athlete sports betting prosecution.

• Around the leagues: looking at the top sports headlines.

Let's gamble...

HISTORIC IOWA CASE

The case, which is currently in federal court, could set a precedent for how illegal gambling is policed.

In front of the investigator's eyes, the computer screen lit up with hundreds of dots on a map, each representing a sports betting app in use. One cluster stood out—it was at the University of Iowa's athletic facilities.

"Once you see it, you can't unsee it," a source familiar with the map reported.

The legal betting age in Iowa is 21, and NCAA athletes and staff are prohibited from gambling on NCAA-sanctioned sports.

The source remarked that a high volume of activity at such a location could suggest "potential fraud, ID theft or something."

In May 2023, Iowa law enforcement and prosecutors, acting on what Brian Sanger of the Iowa Department of Criminal Investigations saw, launched a significant crackdown on college athletes' gambling activities.

The probe led to criminal charges or NCAA penalties for at least 35 athletes and support staff from Iowa and Iowa State, including football, baseball, and basketball players, as well as wrestlers.

Prosecutors secured guilty pleas in misdemeanor cases, though felony charges were dismissed amid questions about the legality of using betting surveillance technology. Over two dozen athletes then filed a federal lawsuit alleging their constitutional rights were violated by the use of geofencing software without a warrant to track their betting activities.

Sanger declined request for comment, but the legal ramifications are expected to impact how law enforcement monitors illegal sports betting by athletes and how the NCAA enforces its gambling rules.

"It is literally an unregulated, almost completely unregulated, $2.5 billion industry," a law enforcement source said. "There's nothing ensuring compliance except for the sportsbooks' pinky promise," another added.

A FanDuel representative declined to comment, while a DraftKings spokesperson claimed their company works closely with state gaming regulators and takes pride in flagging suspicious activity.

Meanwhile, sportsbook executives insisted they are subject to multiple regulations and that legislators should decide if more are needed. They emphasized the role of the NCAA in educating athletes about gambling risks.

"All it takes is an illegal investigation for you to miss out on the rest of your dreams," said former Iowa State running back Jirehl Brock.

Iowa State quarterback Hunter Dekkers and defensive lineman Isaiah Lee were lifting weights on May 2, 2023, when they received calls to return home.

State agents wanted to speak with them. Dekkers recalled his panic, saying, "I've never been in trouble before." Agents questioned athletes about their betting activities, presenting the probe as a larger investigation into possible fraud or identity theft.

In early August, charges were filed. Dekkers and former Iowa receiver Arland Bruce IV faced misdemeanor charges, while Brock, Lee, and others faced felony charges.

As the legal battles continue, the Iowa case underscores the tension between law enforcement's efforts to regulate a burgeoning industry and athletes' rights.

The fallout has already altered how some colleges approach gambling education, serving as a stark warning to athletes about the consequences of illegal betting.

The investigation's repercussions have been significant, with athletes facing severe penalties and filing lawsuits claiming their constitutional rights were violated.

As the courts weigh in, the case could set a precedent for how emerging technologies are used in law enforcement and the balance between privacy and regulation.

The athletes' attorneys argue that law enforcement's use of geofencing software without warrants was a violation of privacy rights.

As the legal challenges unfold, the Iowa case serves as a critical juncture in the evolving landscape of sports betting and athlete regulation.

AROUND THE LEAGUES

A new era: ESPN unveiled its "SEC on ABC" graphics package that will debut this fall, as the days of SEC football on CBS come to an end after nearly 30 years.

Russ on the move: The Clippers traded Russell Westbrook to the Jazz, where he's expected to agree to a buyout and eventually join the Nuggets.

USMNT tumbles: The U.S. men's national team fell five spots to No. 16 in FIFA's latest world rankings — their lowest in two years — after their disappointing showing at Copa América.

Mark your calendar: The 2025 MLB season will open with a two-game series in Japan featuring four of the country's biggest stars as Shohei Ohtani and Yoshinobu Yamamoto's Dodgers will take on Seiya Suzuki and Shōta Imanaga's Cubs.

-via Yahoo Sports/Kendall Baker