Shohei Ohtani's interpreter, Ippei Mizuhara, originally told ESPN that the two logged into Ohtani's bank account together eight or nine times in 2023, and that Matthew Bowyer, a suspected illegal bookmaker under federal investigation, He reportedly sent $500,000 to each of them. The story Ohtani told the nation days after Mizuhara recanted his original claim and was fired by the Dodgers was that the interpreter stole the money to pay off gambling debts.
Both versions of the story raised questions that perplexed the public. Why would a bookmaker extend a credit line of at least $4.5 million to someone who earns a salary of $85,000 as a translator for the Los Angeles Angels? This scenario was easy to understand for those familiar with the inner workings of the gambling market.
“Trust is the lifeblood of illegal bookmakers,” said gambling entrepreneur and investor Chris Grove. “We should therefore not be surprised if illegal bookmakers use credit to attract high-value customers, especially if those customers have shown they are suitable for it.”
The scandal captivated the baseball industry and the larger sports world at a time when gambling is so intertwined with sports consumption.Ohtani, 29, a two-time American League MVP who recently signed a 10-year, $700 million contract, said he has never bet on baseball or any other sport and has not been accused of any wrongdoing.. He described himself as a victim of being deceived by a friend. “Ippei stole money from my account and lied to me,” he said through his new interpreter, Will Ireton. Major League Baseball has launched an investigation. The Los Angeles IRS field office is partnering with the Department of Homeland Security to investigate Mizuhara and Bowyer.
This story also opened the public's doorway to the little-understood world of illegal book manufacturing. Most of the country has been able to legally bet on games since the Supreme Court struck down a 1992 federal law that effectively banned sports betting in most states. However, the American Gaming Association's 2022 report estimates that Americans bet a total of $63.8 billion with illegal bookmakers and unregulated offshore sites in 2021. So why do these bookmakers and offshore operations maintain such thriving businesses?
The main reason, gleaned from interviews with gambling lawyers, entrepreneurs, researchers, and professional gamblers, is the appeal of credit: the ability to bet money you don't actually have. These experts have assembled most of the commentary about the broader world of illegal gambling, rather than the story of Mr. Otani and Mr. Mizuhara. But they also pointed to a variety of additional factors that drive bettors to bookmakers, including greater privacy, the ability to avoid taxes on winnings, the removal of artificial betting limits, and the enduring appeal of convenience.
“The Ohtani case is a good reminder that illegal markets still thrive. Because it’s still in the market,” Grove said.
The prosecution team pursuing Bowyer is the same group that investigated another gambling house run by former minor league baseball player Wayne Nix. Los Angeles Times reported. One of more than a dozen people charged in the investigation is former Dodgers outfielder Yasiel Puig, who has pleaded not guilty. Nix's research demonstrated the modernity of this practice. The concept of meeting bookmakers in dark alleys or seedy bars is outdated. The Knicks used a network of bookmakers who collected bets through websites and phone lines. According to the Washington Post.
Popular poker player and commentator Joey Ingram said the convenience is great, especially when you can place illegal bets with the click of a few buttons without having to visit a Las Vegas casino. He explained that it increases his charm. “The last thing a guy wants to do is go to Circa Sportsbook every day and spend $20,000 (on a game),” Ingram said. “Some people just text someone, and some people go to a website.”
Bookmakers often maintain personal relationships with their clients, allowing them to make certain bets, offering free play credits, or even praising “bad results,” the unfortunate outcome that unites all gamblers. . “They provide customer service that an app can't provide,” said Timothy Fung, co-director of the UCLA Gambling Research Program.
Mr. Fong, a psychiatrist, studies the causes and treatments for gambling addiction. Some people who place bets through illegal bookmakers prefer anonymity. Some people don't want to pay taxes on a potential jackpot.
Daniel Wallach is a Florida sports betting and gambling attorney who previously wrote: The Athletic, suggested that loyalty may keep bettors tied to a bookmaker. “Given all the incentives, it can be difficult to break these patterns,” Wallach said. For regulars, “there may be better lines, better odds.”
Bookmakers also offer bets that legal betting companies may or may not be able to make, depending on state law and exposure risk. For example, some states have banned betting on local college teams, and in the wake of the March Madness college basketball tournament, the NCAA is looking to further restrict college betting. Last week, NCAA President Charlie Baker asked states to completely ban prop betting on college athletes. Bookmakers exist in a world indifferent to these developments, which can be attractive to bettors looking for a particular type of action not offered in the law books.
“Instead of the 30 cereals they are offering, I can get the 100 cereals the bookmaker is offering,” Fong said.
This March, viewers will watch March Madness NCAA Tournament games at the sportsbook at Borgata Casino in New Jersey. (Wayne Parry/Associated Press)
In the case of Suwon and Otani, location is important. California is one of 12 states where sports betting is not legal. In 2022, local voters dropped two competing voting plans to maintain the status quo. This showed how difficult it is to legalize gambling amid costly and often bitter battles between tribal casinos and private gaming companies. Proposition 26 would have legalized in-person gambling at tribal casinos and racetracks. Proposition 27 would have allowed online sports betting.
By the time voters rejected those efforts, Mizuhara told ESPN he already had more than $1 million in gambling debt. Mizuhara said he met Bowyer at a poker game in San Diego in 2021. To promote business, Bowyer told employees that Ohtani was a customer, the Los Angeles Times reported. Bowyer's attorney, Diane Bass, said her client had no contact with Ohtani.
Players often need to be referred to a bookmaker by an existing client, and existing clients may receive a referral bonus when a new player places a bet. If a new player does not pay the bookie when required, the referral will be terminated. Peer pressure often works well as a first resort for bettors to keep paying off their gambling debts.
Bookmakers also offer incentives for their clients to pay in the form of free plays or other forms of free bets. Bettors are incentivized to pay money and take advantage of free bets to keep chasing losses and get back into the black. If a bettor has a large amount of debt, the bookmaker will accept partial payments or put the customer on a weekly or monthly payment plan. Payments are often made through cash transfer apps like his Venmo or PayPal, but depending on the size of the transaction, cash may also be mailed to you.
Mizuhara told ESPN that Bowyer extended him a line of credit that could extend his losses to millions of dollars. Experts explained that this is a practice of bookmakers who are confident in bettors' ability to pay.
Bookmakers can make a lucrative living if they can escape the authorities' attacks, especially if they can attract a few deep-pocketed and high-value customers. Bettors themselves are rarely, if ever, exposed to legal liability for betting with illegal bookmakers. Governments have generally looked to prosecute operators rather than customers when pursuing illegal bookbinding. But at the same time, the lack of government oversight could come back to haunt Sting bettors who win big. If the bookmaker decides not to pay out important wins, the player is left with few options.
Some of the large unregulated gambling operations are based in foreign countries and are therefore outside the jurisdiction of U.S. state regulators. These so-called “offshore” sites often pretend to be regulated American sportsbooks and have domain names like “.lv” that indicate they are based in Las Vegas ( In this example, lv represents Latvia). These usually don't offer the personal experience of illegal bookmakers based in the US, they usually don't offer credit, and getting cash in and out can be difficult. Some gamblers use cryptocurrencies to transact with these books. Some bettors place bets on such sites without knowing that they are illegal, and they stumble upon one of the unregulated sites ostensibly masquerading as legal. I did.
“Look at it, it looks clean, fresh and regulated,” Fung said. “It looks no different than a cheaper version of DraftKings or FanDuel. It's betting on everything.” “They have no idea that this is a gambling activity that is not being carried out.”
Betting on illegal operations can also be profitable for the bettor, if the results are good enough and the payout is guaranteed. In addition to taxing players' winnings, regulated websites can also restrict the actions of gamblers who are considered winners, experts say. Bookmakers may certainly offer more freedom not only from taxes but also from restrictions. “In illegal markets, there are unlikely to be restrictions or restrictions on wagers,” Wallach said.
The evidence suggests that Suwon is far from a winning ticket. Mizuhara portrayed himself as an addict unable to recover his losses. In such cases, the use of credits also helps bookmakers.
“What they're doing is letting these people accumulate a lot of money that they don't have,” Ingram said. “It's very predatory. It's really sad because that's how a lot of gambling in the world works.”
(Top photo of Mizuhara and Ohtani at a Los Angeles Rams game in December: Sean M. Haffey/Getty Images)