In the narrative relayed by Shohei Ohtani’s interpreter Ippei Mizuhara to ESPN, it was disclosed that the two individuals accessed Ohtani’s bank account together on multiple occasions in 2023 and transferred $500,000 increments to Mathew Bowyer, a suspected illegal bookmaker under federal scrutiny. However, in a subsequent version of events shared by Ohtani following Mizuhara retracting his initial statements and being terminated by the Dodgers, it was revealed that the interpreter misappropriated the funds to settle his gambling debts.
Both renditions of the story left the general public pondering a puzzling question: Why would a bookie extend a substantial line of credit, totaling at least $4.5 million, to someone claiming to earn an $85,000 salary as an interpreter for the Los Angeles Angels? This scenario was more comprehensible to those familiar with the intricacies of the gambling markets.
“Credit is the lifeblood of illegal bookmakers,” stated Chris Grove, a gambling industry professional and investor. “Therefore, it’s not surprising when an illegal bookmaker leverages credit to attract a high-value customer, particularly when that customer has demonstrated reliability.”
The scandal has gripped the baseball community and the broader sports world at a time when the intersection of gambling and sports consumption is increasingly prevalent. Ohtani, the 29-year-old two-time American League MVP, who recently inked a lucrative 10-year, $700 million deal, asserted that he never engaged in betting on baseball or any other sports and has not been implicated in any illicit activities. He portrayed himself as a victim deceived by a friend. Through his new interpreter, Will Ireton, Ohtani declared, “Ippei has been embezzling funds from my account and spreading falsehoods.” Major League Baseball has initiated an investigation, while the IRS’s Los Angeles office has joined forces with the Department of Homeland Security to probe Mizuhara and Bowyer.
The narrative also shed light on the enigmatic realm of illegal bookmaking. Despite the Supreme Court overturning a 1992 federal law that formerly prohibited sports betting in most states, a significant portion of Americans continue to engage in wagering through illegal bookies and unregulated offshore platforms, as per a 2022 report by the American Gaming Association. So, what drives the enduring success of these illicit bookies and offshore entities?
The allure of credit, which enables individuals to gamble with borrowed funds, is a primary factor, as indicated by insights from gambling attorneys, entrepreneurs, researchers, and professional gamblers. While these experts predominantly focused on the broader landscape of illegal gambling rather than the Ohtani-Mizuhara saga, they also pointed to various other incentives that draw bettors towards bookmakers, such as the assurance of privacy, circumventing taxes on winnings, surpassing imposed betting limits, and the enduring appeal of convenience.
“The Ohtani incident serves as a stark reminder of the thriving underground market, where illicit operators offer services that legal entities cannot or will not,” remarked Grove.
The team pursuing Bowyer overlaps with the group that probed a separate gambling ring orchestrated by former minor-league baseball player Wayne Nix, as reported by the Los Angeles Times. Yasiel Puig, a former Dodgers outfielder, is among the dozen individuals implicated in that investigation. The Nix investigation exemplified the contemporary nature of the practice, with Nix employing a network of bookies who managed bets through a website and a phone line, according to the Washington Post.
The convenience factor adds to the appeal, particularly when placing an illicit bet merely entails a few clicks instead of visiting a Las Vegas casino, mentioned a professional gambler. “Most individuals prefer not to frequent Circa Sportsbook daily to wager $20,000 on games,” remarked Ingram. “Some opt to text a contact or visit a website instead.”
Bookies often cultivate personal relationships with clients, offering leniency on certain bets, granting free play credits, or empathizing over unfortunate outcomes that resonate with all gamblers. “They provide customer service that cannot always be replicated through an app,” noted Timothy Fong, co-director of the UCLA Gambling Studies Program.
Fong, a psychiatrist specializing in gambling addiction, underscored that some individuals who bet through illegal bookies seek anonymity, while others aim to evade taxes on potential winnings.
Daniel Wallach, a gambling attorney based in Florida, highlighted that a sense of loyalty might keep bettors entwined with bookies. “These patterns can be difficult to break due to the multitude of incentives,” Wallach explained. “There may be better odds and lines available for a regular customer.”
Bookies provide betting options that regulated entities either cannot offer due to state regulations or are unwilling to provide due to exposure risks. For instance, certain states prohibit wagering on local college teams, prompting the NCAA to advocate for further restrictions on college betting, including prop betting on college athletes. Bookies operate independently from these constraints, catering to bettors seeking specific types of action not available through legal channels.
“Instead of being limited to a few options, bettors can access a myriad of choices through their bookie,” Fong remarked.
Viewers watch March Madness NCAA Tournament games at the sportsbook at the Borgata Casino in New Jersey this March. (Wayne Parry / Associated Press)
In the case of Mizuhara and Ohtani, geographic location played a pivotal role. California, one of 12 states without legalized sports betting, grappled with ballot initiatives in 2022, ultimately rejecting proposals to enable in-person betting at tribal casinos and horse tracks via Proposition 26 and online sports betting through Proposition 27. Mizuhara found himself deeply indebted to the tune of over $1 million even before these initiatives were voted down, attributing his predicament to a chance encounter with Bowyer at a poker game in San Diego in 2021. Bowyer allegedly touted Ohtani as a client to bolster his business, although Diane Bass, Bowyer’s attorney, refuted any direct association between her client and Ohtani.
In many instances, new players must be referred to a bookie by an existing client, with the latter often receiving a referral bonus when the newcomer places bets. Failure to meet payment obligations prompts the bookie to sever ties with the referring client, with peer pressure often serving as an effective tool to ensure bettors settle their debts.
Bookies entice clients to make payments through incentives like free play or other forms of complimentary bets, motivating bettors to clear their debts and continue pursuing winnings to offset losses. When bettors accumulate substantial debt, bookies may accept partial payments or devise weekly or monthly payment plans. Payment transactions typically occur via cash transfer apps like Venmo or PayPal, occasionally via traditional mail depending on the transaction amount.
Mizuhara disclosed to ESPN that Bowyer extended a line of credit enabling his losses to escalate into the millions, a practice deemed customary for bookmakers confident in a bettor’s repayment capacity.
Bookmakers can amass substantial wealth, particularly by attracting affluent, high-value clients — provided they evade legal scrutiny. Bettors themselves seldom face legal repercussions for engaging with illegal bookies, as authorities primarily target operators in anti-illegal gambling endeavors. Nonetheless, the absence of regulatory oversight can disadvantage bettors who achieve significant wins, as bookies may opt not to honor substantial payouts, leaving players with limited recourse.
Some of the largest unregulated betting platforms operate outside the purview of U.S. state regulators by being based in foreign jurisdictions. These offshore sites mimic regulated American sportsbooks in appearance, employing domain names like “.lv” to imply a Las Vegas origin (with “lv” standing for Latvia in this context). These platforms generally lack the personalized experience offered by U.S.-based illegal bookies, seldom extend credit, and involve complexities in cash transfers; certain bettors resort to cryptocurrency for transactions with these platforms. A subset of gamblers unwittingly wager on such sites, unaware of their illicit nature, stumbling upon unregulated platforms that feign legitimacy.
“At first glance, these sites appear reputable and regulated,” remarked Fong. “They resemble a budget version of DraftKings or FanDuel, offering a plethora of betting options.” The unwitting consumer, Fong elucidated, “remains oblivious to engaging in unregulated, unprotected gambling activities.”
For successful bettors — assured of receiving payouts — wagering with an illicit operation can be lucrative, as regulated platforms may tax winnings and impose betting limits on perceived winners. Illegal bookies afford greater freedom, not just from taxes but also from restrictions. “In the illicit market, constraints on wager amounts are unlikely,” noted Wallach.
Evidently, Mizuhara was far from a profitable bettor, portraying himself as an addict unable to recover his losses. In such scenarios, the availability of credit benefits the bookmaker as well.
“By allowing individuals to plunge into debt, they exploit these vulnerable individuals,” lamented the professional gambler. “It’s a predatory practice. It’s disheartening since this reflects a significant aspect of the gambling world.”
(Top photo of Mizuhara and Ohtani at a Los Angeles Rams game in December: Sean M. Haffey / Getty Images)
