Seven years into legalized sports betting in America, 2025 became the year the industry faced its biggest test yet. High-profile scandals rocked the foundation of prop betting, prediction markets emerged as a genuine threat to traditional sportsbooks, and public opinion began to shift against the gambling boom.

It's been one hell of a ride. Let's recap what happened and what it means for the future.

The Quick Hit

• Biggest scandal: Guardians pitchers Emmanuel Clase and Luis Ortiz indicted for pitch-rigging
• Industry shake-up: DraftKings, FanDuel, and Fanatics left the AGA to launch prediction markets
• Public sentiment shift: 43% of Americans now say sports betting is bad for society (up from 34% in 2022)
• The regulatory response: MLB announced new restrictions on pitch-level prop bets

The Clase Scandal: Baseball's Worst Nightmare

The most damaging story of the year was undoubtedly the indictment of Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz on charges of taking bribes to throw specific pitches for gamblers.

According to federal prosecutors, Clase allegedly arranged with bettors as early as May 2023 to throw balls instead of strikes so they could profit on pitch-level prop bets. Ortiz joined the scheme in June 2025. Together, the gamblers won at least $450,000, with the pitchers receiving kickbacks.

Clase, a three-time All-Star and two-time AL Reliever of the Year, pleaded not guilty in November. His trial is scheduled for May 4, 2026.

The allegations are the most severe for baseball since Pete Rose agreed to a lifetime ban in 1989. In response, MLB announced new restrictions on prop betting, including a $200 wager cap on pitch-level markets.

The Prediction Market Wars

The other seismic shift of 2025 was the emergence of prediction markets as a genuine competitor to traditional sportsbooks.

DraftKings, FanDuel, and Fanatics all withdrew their memberships from the American Gaming Association — the industry's main lobbying group — to pursue their own prediction market platforms. DraftKings Predictions and FanDuel Predicts both launched in recent weeks.

Former New Jersey Governor Chris Christie, who championed the fight for legal sports betting that led to the Supreme Court's 2018 decision, has now partnered with the AGA to fight against prediction markets involving sports events. The irony is not lost on us.

The battle lines are drawn: traditional sportsbooks want stricter regulation of prediction markets, while tech-forward operators see them as the future of betting.

Public Opinion Is Turning

A Pew Research poll from October found that 43% of U.S. adults now say legalized sports betting is bad for society — up from 34% in 2022. And 40% say it's bad for sports specifically, up from 33%.

The numbers reflect growing concerns about problem gambling, particularly among young men. Research has shown that in states with legal online gambling, bankruptcy rates rose 28% and debt collection amounts increased 8% roughly two years after legalization. Another study found that every dollar spent on sports betting shaved 99 cents off investments.

States continue to rake in tax revenue, but calls to the National Problem Gambling Helpline are rising. The data suggests that while gambling is great for state coffers, the human cost is becoming harder to ignore.

What's Next for 2026

As we head into the new year, several storylines will dominate:

1. The Clase trial: If convicted, it could fundamentally change how prop betting works in baseball and beyond.

2. Prediction market regulation: Expect intense lobbying battles as traditional sportsbooks try to rein in their new competitors.

3. More state legalization: The remaining holdout states will face increasing pressure to legalize, despite the growing concerns about societal impact.

4. Responsible gambling initiatives: Operators will likely be forced to implement stronger safeguards as scrutiny increases.

The Bottom Line

2025 was a year that exposed both the opportunities and the vulnerabilities of the sports betting industry. The scandals shook public trust. The prediction markets created new competition. And the social cost of gambling became impossible to ignore.

For degenerates like us, the games go on. But it's worth acknowledging that the industry we love is at a crossroads. How it navigates these challenges will determine what sports betting looks like for the next generation.

Stay tuned. And gamble responsibly.