The Evolution of Insider Trading in Sports: A Gripping Epidemic

In 2018, the Supreme Court ruled that the issue of gambling and sports betting would be left to each state’s discretion. This landmark decision opened up countless opportunities for the common man to legally gamble on the outcomes of different sports games; however, the practice of illegally participating in gambling has been around in sports for centuries. 

In this article, we will take a look at some of the most infamous incidents involving collegiate and professional athletes.

The 1919 Chicago White Sox

Perhaps the most shameful moment in Major League Baseball occurred during the 1919 World Series between the Cincinnati Reds and the Chicago White Sox. The Chicago White Sox had a very successful last few years, having won the World Series in 1917 against the New York Giants. In 1918, the White Sox struggled; however, it was largely due to losing their star player, “Shoeless” Joe Jackson, to World War I service. 

The 1919 White Sox were a powerhouse, as Jackson hit .351, Eddie Collins hit .319 with a .400 on-base percentage, and Nemo Leibold hit .302 and totaled 81 runs. On the mound, the White Sox had Eddie “Knuckles” Cicotte, who tallied 29 wins, a Major League best. The Sox also had Claude “Lefty” Williams, who posted an impressive 2.64 ERA. Compared to the upstart Cincinnati Reds, the White Sox were clearly better and should have easily beaten them. But they didn’t. So, what went wrong?

Even though the White Sox had plenty of talented players, the team’s dynamic and chemistry were all over the place. There was tension between owner Charles Comiskey and almost the entire roster, as Comiskey was known for his extreme desire to save money in any way possible. The team even got the nickname the “Black Sox” because Comiskey would sometimes refuse to wash the players’ jerseys to save money. He also underpaid several of the Sox’s top players. Times were different in 1919, and the players were unable to negotiate for better pay.

Many players were frustrated by their low pay, so some resorted to drastic measures to make extra money. 

On Sept. 18, 1919, White Sox player Chick Gandil met with a Boston sportsbook maker and discussed his plans to throw the series in exchange for money. The final figure was $80,000, equivalent to $1,575,000 in 2025 terms. Gandil then met with some of his teammates to discuss throwing the series. 

Although it is not certain, it’s alleged that eight White Sox actively participated in fixing the 1919 World Series. The eight include Gandil, Jackson, Cicotte, Williams, Oscar Felsch, Fred McMullin, Charles Risberg, and George Weaver. Because of their involvement, the MLB banned them from ever playing and even disqualified them from ever entering the Hall of Fame. 

Even after the players were handed their punishments, some continued to deny involvement in the fix. Specifically, Jackson claimed he played to win the series and only learned of the fix from his teammates. The statistics back up Jackson’s claim as he led the series with a .375 Batting Average. Others in on the fix, like Williams, claimed that Jackson was never present when the players met with the gamblers and that they only mentioned Jackson to gain the gamblers’ trust.

Other members of the scandal were very open about their involvement. Cicotte and Gandil were very candid about their participation, and Williams’ performance did more than enough to implicate him. Williams went 0-3 in the series and had a 6.63 ERA in The Games he pitched.

In the aftermath of the scandal, MLB appointed a commissioner to protect the sport’s integrity. This change also gave players greater bargaining power in contract negotiations. Previously, if a player rejected a contract from one team, it prevented them from negotiating with another team.

Before the scandal, the World Series was a best-of-nine, which made it easy for a single pitcher to appear three times in a series. Like Williams, many pitchers could heavily influence, and even decide the outcome of the Series. 

Although the scandal was an absolute disaster and ruined the lives of many, its effects helped fix some of the MLB’s biggest flaws.

The Chicago White Sox scandal is arguably the largest controversy in sports history. 

The NCAAB in the 1940s and 50s

In the late 1940s and into the early 1950s, the Kentucky Wildcats were a force to be reckoned with on the court. Adolph Rupp had won the championship in 1948, 1949, and 1951 with stacked rosters that included guys like Bill Spivey, Alex Groza, and Ralph Beard, all of whom had serious potential in the NBA. However, the world of college basketball was shaken by allegations of point shaving. 

Groza, Beard, and Dale Barnstable were accused of point shaving in a 1949 NIT tournament game against Loyola Chicago, which the Wildcats lost. At the time of the game, Kentucky was undeniably the best team in the country, and its loss came as a surprise to everyone in attendance. After the game, Rupp spoke with his assistant and said something was wrong with the team, and it wasn’t just a poor effort. 

However, Kentucky’s stars were not the only ones who were caught up in point-shaving scandals. Some other stars who were caught up in the scandal included Gene Melchiorre, Sherman white, Bill Mann, Irwin Dambrot, Norm Mager, and Jack Molinas.

Hundreds more schools and players also got into trouble for alleged point shaving.

Boston College Eagles

Rick Kuhn, a backup forward on the 1978 Boston College basketball team, agreed to point-shave to ensure the Eagles won by less than the spread. In other words, Kuhn’s job was to make sure Boston College did not cover the spread. Even though Kuhn was not a star on the team, he was able to influence the outcome of the game enough for mobsters to trust him. In particular, Henry Hill, who was an associate of the Lucchese crime family, used Kuhn’s influence to rig games in his favor. Kuhn, in favor, received compensation from Hill after the desired outcome happened.

Arizona State Sun Devils

During the 1993-94 season, Arizona state guard Stevin “Hedake” Smith was poised to be a first-round pick in the upcoming NBA draft. His skill on the floor was undeniable; however, he got caught up in sports gambling and accrued a large lump sum of debt that he was unable to pay. His bookie suggested that instead of paying him, he could participate in point shaving to have his debt forgiven. In addition, once his debt was paid off, Smith would receive $20,000 per game that he agreed to fix. 

The procedure was quite intricate. One of the bookie’s friends, who had much more money to bet with, would call Smith and tell him a specific number. The number reflected the margin of victory Smith was allowed. The bookie’s friend would normally give them a cushion, and the number would be two or three more than the spread. Eventually, however, casinos caught on to the suspicious behavior of betting patterns in Arizona state games, and Smith was caught. The consequences cost him a future in the NBA, and shed more light on an ongoing problem in the world of collegiate sports.

Pete Rose

Perhaps the most polarizing figure in all of sports, Pete Rose’s involvement in sports gambling was very complex. Usually, crime families and syndicates tried to take advantage of players who were not getting paid enough money. During his career, Rose was the highest-paid player in the league. So, if he wasn’t scrounging for extra cash and he wasn’t being used by third parties, what did Rose’s gambling look like? Simply put, Rose claims he was betting on his team to win. He stuck with that story his entire life; never once did he say he bet on anything else besides his team to win. Because of this, the MLB banned him for life, which made headlines nationwide, as Rose was a sure-fire future Hall of Famer. The ban was met with mixed emotions. Many people saw nothing wrong with Rose’s betting, as it didn’t affect his performance negatively. Others are very keen on the idea that he broke the rules, and this is part of his punishment. Rose recently passed away, and MLB Commissioner Rob Manfred reinstated him and “Shoeless” Joe Jackson, making them eligible for the Hall of Fame.

Terry Rozier and Johntay Porter

On March 23, 2023, in a game against the New Orleans Pelicans, Terry Rozier played about nine minutes before leaving with a reported foot injury. At first, it appeared legitimate, but casinos soon noticed an unusual amount of money being wagered on Rozier’s unders in points, rebounds, and assists. This raised red flags, and the casinos notified the league. The NBA conducted an investigation, and a federal probe followed, but Rozier was ultimately cleared at the time.

Fast forward to October 2025: Rozier was arrested in connection with the same conspiracy. Trail Blazers head coach Chauncey Billups was also arrested, though his charges were tied more to rigged poker games than to NBA betting activity.

It remains unclear why Rozier became involved in the scandal, especially given that he has earned an estimated $161 million in NBA salary alone, not including endorsements.

However, Rozier isn’t the only player to fall victim to this kind of scheme. Johntay Porter was involved in a similar scam. He informed friends and associates of his plan to exit games early by faking an injury so he wouldn’t return. Like Smith at Arizona State, Porter was motivated by gambling debt. After losing more than he could repay, his bookie offered to clear his debt if Porter helped them profit by hitting his unders. They threatened to come to Toronto and beat him up if he refused. Porter agreed, but suspicious betting patterns were eventually detected, and authorities were alerted. 

He has since been charged with a federal felony and now faces jail time. The NBA has banned him for life.

Emmanuel Clase and Luis Ortiz

In the world of sports betting, you can wager money on just about anything that can happen in any sporting event. There is perhaps no greater example of this than Emmanuel Clase and Luis Ortiz’s plan to procure thousands from sportsbooks. 

Clase and Ortiz, both of whom pitched for the Cleveland Guardians, were relievers for the team and quite good. In 2024, Clase had one of the most dominant seasons of pitching we have ever seen. As a closer, he posted an unfathomable 0.61 ERA in 74 regular-season appearances. When the Guardians held a lead going into the ninth inning in the regular season, they were 82-0. That is not normal, and most of the credit needs to be given to Clase. He finished second in Cy Young voting, which is an award given to the best pitcher. It is rare for a closer to be nominated for the award, so for Clase to come in second was historic. 

Ortiz was not nearly as impressive as Clase was, however, he was still a serviceable arm out of the bullpen for the Guardians. He holds a 4.05 career ERA and has punched out 279 batters over the course of his four-year career. 

On surface level, Clase and Ortiz seemed like quiet teammates who were focused on winning, however on the inside they were entangled in one of the most complex betting operations we have seen.

It is alleged that the operation began in May 2023, where Clase would alert associates who were in his native country of the Dominican Republic of his plans to throw a ball on the first pitch of his appearance. On some occasions, he would alert them of his plans to throw a pitch below a certain velocity. His associates would then place money on Clase’s first pitch being a ball, or his first pitch being under a certain velocity. 

That was it. 

He was not betting on the game’s outcome, which allowed Clase to still perform at a high level. He was quite literally betting on his faults when he had one of the most impressive closer campaigns in recent history.

The operation kept going until he and Ortiz were indicted on Nov. 9, 2025.

Upon the indictment, prosecutors got access to Clase’s text messages with the associates. On one occasion, Clase and the bettors’ plans were foiled.

On May 28, the Guardians would go up against the Dodgers in an early season tilt. Court documents show that at 1 p.m. earlier in the day, bettors in the Dominican Republic texted Clase to confirm the operation was still a go. Clase confirmed, and undoubtedly the bettors in the Dominican Republic were preparing for another huge payday. 

The bettors placed $4,000 that Clase’s first pitch would be a ball, and sat back and watched. Andy Pages, the Dodgers outfielder, came to the plate and Clase prepared his first pitch.

The pitch was thrown in the dirt, but there was a problem. Pages swung. Because of Pages lack of plate vision, the bettors in the Dominican Republic lost $4,000. After the game, Clase and the bettors exchanged texts with sad GIFs. Although they experienced a brief hiccup that day, it is estimated that Clase and Ortiz won bettors in the Dominican Republic close to $400,000.

The case of Clase begs the question of “why?”

Clase was playing his best baseball and had just signed a $20 million contract in 2022. Why did he risk millions in contract money to win thousands off wagers? It is unclear why Clase participated, but one thing is certain: Clase will never take the field of an MLB stadium ever again.