Are UFC fighters allowed to bet on themselves? Revisiting the code amendment after James Krause scandal
The UFC implemented a significant policy change to address concerns surrounding insider betting. The new guidelines prohibit contracted fighters and their teams from placing wagers on UFC bouts.
This decision came after a series of controversies raised concerns about potential conflicts of interest and fight fixing. An excerpt of the official statement addressed to all fighters and managers by UFC's Chief Business Officer Hunter Campbell reads as follows:
"In light of clear direction that we have received from regulators responsible for the regulated sports betting industry in the United States, we are compelled at this time to recognize in the UFC Athlete Conduct Policy certain restrictions relating to wagering by our athletes, members of their teams and certain others."
Previously, UFC fighters enjoyed a relatively loose rein on betting. They could wager on fights that did not involve themselves and even place bets on their victories. However, this approach faced growing scrutiny. In June 2021, Justin Jaynes sparked questions by betting his fight purse before facing Charles Rosa.
The UFC initially downplayed the concerns. However, the Nevada Athletic Commission took action regarding the matter and suspended several involved parties.
While expressing confidence in the sport's integrity, UFC president Dana White issued a strong warning to fighters contemplating insider betting. He emphasized the potential legal consequences, highlighting the possibility of federal prison sentences:
“Do you know what the outcome of this is? Like, if I penalize them, you get cut. They’re gonna go to f*cking federal prison. Federal. F*cking. Prison. If you’re that f*cking stupid and somebody else wants to do it, knock yourself out. There’s not enough money in it to ruin your life and, not go to jail, go to federal prison.”
Check out Dana White's statement below:
What was the James Krause UFC betting scandal?
Krause openly discussed his frequent MMA betting on 'The MMA Hour' podcast, even boasting about the success of his '1% Club' Discord channel dedicated to gambling on fights. He claimed to make more money betting than coaching, citing the low percentages (typically 10%) he earned from cornering fighters.
The controversy intensified in November 2022 with a fight between Shayilan Nuerdanbieke and Darrick Minner, cornered by Krause. Suspicious betting activity emerged in the hours leading up to the bout, with odds for a Nuerdanbieke win by knockout/TKO experiencing a drastic shift.
Nuerdanbieke did win by first-round TKO via elbows, further fueling speculation due to Minner sustaining an undisclosed pre-fight knee injury.
The Nevada Athletic Commission suspended both Krause and Minner while investigations proceeded. Further suspensions followed, including UFC flyweight Jeff Molina, who trained with Krause.
The UFC initially downplayed the situation. However, it ultimately partnered with U.S. Integrity, a betting integrity firm, to monitor future fights. More importantly, the UFC implemented a new policy prohibiting contracted fighters and their teams from placing bets on UFC events.