NBA Bans Parlay Bets as DraftKings Faces Pressure

The United States remains the world's largest gambling market, and this week regulatory pressure rose noticeably. The pro-free-market approach is giving way to tighter scrutiny of betting companies.

The NBA has banned its official betting partners from offering parlay bets, one of their most profitable products. The league said it is targeting betting types it considers problematic, and that manipulation scandals in sports played a role in the decision. Parlays are reported to make up about 30 percent of bets in the US, but bring in roughly 60 percent of revenue.

The ban does have a gap, however. Prediction markets can continue to offer 'combo' bets that resemble parlays. This leaves traditional betting sites at a competitive disadvantage.

DraftKings, on the other hand, faces growing scrutiny over its use of artificial intelligence. After a New York Times investigation in which employees claimed the technology was used to target vulnerable customers, the Louisiana Gaming Control Board granted the company a conditional four-month extension, running until February 19, 2027, instead of a full license renewal.

The board said it wants to examine the company's use of artificial intelligence and resolve uncertainty in suitability checks for stakeholders holding more than 5 percent of shares. Massachusetts, Maryland, Michigan, Maine and New York have also placed DraftKings' practices under review. The congressional investigation is widening too.