Two MLB Players Charged in Major Sports Betting and Money Laundering Case in New York

In a stunning development that has sent shockwaves through the world of professional sports, two active Major League Baseball (MLB) players have been formally charged in New York with illegal sports betting and money laundering. The indictment, announced Friday by the U.S. Department of Justice (DOJ), accuses the athletes of running an extensive betting operation that allegedly involved wagering on baseball games — including some in which they may have played.

According to federal prosecutors, the two players — whose names have not yet been publicly released pending further investigation — are believed to have funneled hundreds of thousands of dollars through offshore betting accounts between 2022 and 2024. The DOJ said the case was built after a months-long investigation involving the FBI, the IRS Criminal Investigation Division, and MLB’s own integrity monitoring team.

“These charges represent a serious breach of trust in America’s national pastime,” said U.S. Attorney Breon Peace of the Eastern District of New York. “Professional athletes are expected to uphold integrity, not exploit it for personal financial gain.”

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How the Scheme Worked

Court documents reveal that the players allegedly placed bets through an intermediary — a financial broker based in the Dominican Republic who laundered the proceeds using cryptocurrency and shell companies. Investigators traced multiple transactions tied to a luxury car purchase in Florida and several real-estate investments in the Caribbean.

The players reportedly used encrypted messaging apps to communicate with bookmakers, often using code words to disguise the nature of the bets. Prosecutors say one player alone placed over 1,200 bets on baseball and basketball games, totaling nearly $3.5 million.

Federal agents discovered the scheme after identifying unusual financial transfers linked to one of the player’s endorsement accounts. Once investigators obtained a warrant to review his phone records, they uncovered a web of messages referring to “game lines,” “spreads,” and “locks of the week” — all terms consistent with illegal sports gambling.

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MLB’s Response

Major League Baseball Commissioner Rob Manfred released a statement Friday afternoon saying that MLB has “zero tolerance for any form of gambling by active players on baseball games.” The league confirmed both players have been suspended indefinitely, pending the outcome of the legal process.

“Our sport depends on fair competition and honest play,” Manfred said. “Any actions that compromise those values will be met with the harshest possible penalties.”

This marks the most serious gambling-related scandal to hit Major League Baseball since the Pete Rose case in the late 1980s, when the all-time hits leader was banned for life after betting on games involving his own team.

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Reactions Across the League

Fans and analysts across the sports world expressed shock and disappointment. Many players have recently signed contracts worth tens of millions of dollars, raising questions about why anyone in such a privileged position would risk their career.

“Honestly, it’s heartbreaking,” said one veteran player who spoke anonymously. “We’ve all been educated about gambling policies every season. There’s just no excuse.”

Sports journalists are already speculating on potential long-term impacts, including whether MLB might introduce mandatory integrity audits for all players and staff. Legal experts predict that, if convicted, the accused players could face up to 20 years in federal prison for money laundering and an additional five years for illegal gambling.

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A Broader Concern: Gambling in Professional Sports

This incident highlights a growing tension between legalized sports betting and professional leagues. Since the U.S. Supreme Court lifted the federal ban on sports gambling in 2018, states across the country have opened the doors to billions in wagers. While MLB and other leagues have struck lucrative partnerships with betting platforms, the blurred line between marketing and misconduct has become increasingly problematic.

“Professional sports can’t promote gambling on one hand and punish it on the other without confusion,” said Dr. James Whitmore, a sports law professor at Columbia University. “Athletes are constantly exposed to gambling promotions — it’s part of the environment now.”

According to the American Gaming Association, sports betting in the U.S. generated over $12 billion in revenue in 2024, a figure expected to grow by 15% in 2025. But experts warn that the industry’s expansion could make future scandals more likely.

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What Happens Next

Both players are expected to appear in federal court in Brooklyn next week. The DOJ confirmed that plea negotiations are not currently underway, suggesting prosecutors plan to pursue full convictions. MLB has pledged full cooperation with federal authorities.

Meanwhile, team officials and league sponsors are reportedly reviewing internal compliance protocols to prevent similar incidents. Several sports ethics organizations have called for stricter regulations and real-time monitoring of players’ betting activity.

For now, the case serves as a powerful reminder that even in an era of legalized sports wagering, the integrity of the game remains sacred — and the consequences of crossing that line can be career-ending.