Betting mafia: crime that shakes football can affect MMA? Expert analyzes context

Jeff Molina (left) is suspended from the UFC on suspicion of involvement in illegal betting. Photo: Reproduction/Instagram

What was supposed to be something professional and recreational became the subject of police pages. Sports betting, which has grown rapidly in Brazil, has once again been the target of scandals in recent days. After the 'Maximum Penalty' operation, which investigates manipulation of results in Brazilian football, came to light, the betting community began to question the veracity of bids and outcomes in various sports.

Bets on MMA were also the target of investigations after suspicious movements of high investments in results or fighters. Victim of recent cases, the UFC made official, in October 2022, the prohibition of athletes, relatives and close friends from betting on fights led by Ultimate.

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“We are writing to inform you of a modification to the UFC Athlete Conduct Policy (…) in light of the clear guidance we have received from the regulators responsible for the regulated sports betting industry in the United States, we are obliged at this time to acknowledge in UFC Athlete Conduct Policy certain restrictions regarding the wagering of our athletes, members of their teams and certain others (…) sometimes violating these prohibitions can lead to criminal charges,” reads part of the statement published by Hunter Campbell, director of Ultimate business.

Unlike what happens in football, where the betting gang directly interferes in the game, mainly paying players to be punished with cards, the main controversy involving betting in MMA and, more precisely in the UFC, has to do with sharing privileged information to betting groups.

Coach is investigated by the FBI on suspicion of UFC betting scandal

Jeff Molina alongside James Krause (right). Photo: Reproduction/Instagram

Months before the 'Maximum Penalty' operation took over sports news in Brazil, the UFC was experiencing its own betting scandal, with the organization's former fighter and coach James Krause as its central figure.

A declared sports betting enthusiast, Krause ran the '1% Club' channel on Discord, where he shared tips and predictions for anyone who wanted to bet on MMA fights. The North American even stated that he bet on practically all UFC fights, including those of his pupils, and that he profited more from betting than from coaching.

The central point of the scandal involving James Krause occurred in the UFC Las Vegas 64, held on November 5th of last year. More precisely in the duel between Shayilan Nuerdanbieke and Darrick Miner, an athlete coached by Krause. Hours before the fight, an intense movement of bets on Nuerdanbieke's knockout victory caught the attention of bookmakers, especially after the result was confirmed in just over a minute of the first round when Miner suffered a leg injury after throwing a kick the opponent.

It was later revealed that Miner had entered the octagon with a pre-existing knee injury, which raised suspicions that James Krause may have shared privileged information about his pupil to groups of gamblers.

N. Shailyan (right) beat D. Minner (left) in the UFC. Photo: Reproduction/Instagram

The incident was initially investigated by US Integrity and the UFC itself and, in the same month, James Krause lost his coaching license with the Nevada Athletic Commission, being prevented from accompanying his pupil Miles Johns in the UFC Las Vegas 65.

As the investigations progressed, the UFC announced that fighters who chose to continue to be trained by Krause, or even at the trainer's gym, would be banned from participating in the organization's events. Additionally, Derrick Miner was fired from Ultimate.

UFC President, Dana White, who months earlier minimized what happened, changed his tone and revealed the UFC's involvement. FBI  (Federal Department of Investigation) in the investigations and risk of 'federal prison' for the fighters involved.

In January of this year, the 'ESPN' North American concluded, after a long investigation, that James Krause worked for the foreign website 'ABCBeeting.ag' since at least 2019. The report alleged that Krause acted as an agent for the site offering a line of credit and referral kickbacks.

Soon after, flyweight (up to 56,7kg) Jeff Molina, coached by James Krause for years, was suspended by the Nevada Athletic Commission accused of 'considerable involvement' in the 'betting scheme' that allegedly involved his coach. Although he has not been released by the UFC, Molina remains suspended from the organization until investigations are completed.

Fighter raises suspicions after thanking bettor after victory

D. Onama submitted G. Armfield in the UFC Las Vegas 58 (Photo: Instagram/UFC)

About four months before the whole issue involving James Krause came to light, the featherweight (up to 65,7kg) david onama was the center of another controversy involving betting on the UFC. After his victory over Garrett Armfield in the UFC Las Vegas 58, the Ugandan took to social media to thank the bookmaker 'Skinnybets' for betting that the fight would end after the middle of the second round.

Onama's post raised suspicions from the MMA community. Used to defining fights in the first round and with broad favoritism against Armfield, who was making his UFC debut and had accepted the fight four days in advance, david onama he staged a tepid first round and defined the fight with a submission in the second half of the second round.

Although it caught the attention of the community, the relationship between david onama and the 'Skinnybets' bettor was not the target of an investigation, or, at least, it did not generate consequences for the Ugandan, who returned to the Octagon about a month later and has a fight scheduled against the Brazilian Gabriel Mosquitinho in June.

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Sam Hughes in victory in the UFC (Photo: InstagramUFC)

In April this year, at strawweight (up to 52,1kg) Sam Hughes also drew attention for a controversial statement after the victory over the Brazilian Jacqueline Amorim, UFC 287. At a press conference after the event, the American revealed that her boyfriend bet a thousand dollars (around R$5) on her victory.

Hughes' statement came about five months after the update to the UFC's code of conduct, which prohibits athletes, family members, team members and anyone close to fighters from placing bets on the organization's fights.

Although the contradiction was noticed by fans and part of the specialized press, Hughes' speech was not the subject of any official statement from the UFC, nor did it generate public consequences for the athlete.

Expert analyzes context and risk to MMA

Specialist in sports betting, focusing on MMA, Bernardo Oliveira, founder of the Channel 'Bernardo Oliveira Apostas', YouTube, spoke exclusively to SUPER FIGHTS and collaborated with the team in building parallels between sports. An administrator by training, today he dedicates himself exclusively to the 'bets' and indicated the risks of their work being harmed by the criminal actions of third parties.

“Despite being another sport, it ends up relating. The Government is already wanting to regulate betting and this could have an impact on those who bet on MMA. The betting houses have sports and, suddenly, they can leave Brazil. This could affect me. In my opinion, what is needed is more punishment. Impunity provides this type of situation, in my view. Many (football) players are 'ignorant' and don't know how things work. If they knew how easy it is to find out (match fixing), they wouldn't take any chances. Serie A player, who earns a good salary, it doesn't make sense to take risks for 'nothing', compared to the salary they earn. I see it as great ignorance. There is also a lack of clubs educating their players. They need to explain what happens, what risks you bring to the company and yourself. Now, the clubs are more connected after this scandal”, said Bernado.

As mentioned, Oliveira understands that the punishment should be close to something that seeks to nullify any attempts at unsportsmanlike activities. In an exercise of imagination, the professional explained himself.

“I don't know exactly what punishment, but it has to be something that prevents the fighter from thinking about the possibility of committing something illegal, fraud. It has to be something that he abhors this type of situation,” he said.

UFC Apex Octagon, in Las Vegas (USA). Photo: Reproduction / Twitter UFC Espanol

As a practical example, Bernardo describes the UFC's recent position, which prohibited athletes and people close to them from placing bets on themselves or related people. The organization seeks to free itself from questions about the legitimacy of its professional commitments. Betting houses, as a pillar for the entertainment model, were also mentioned, bringing possibilities to minimize crimes that could tarnish the initial plan.

“The UFC even took action prohibiting any type of bet from the fighters themselves. Dustin poirier, for example, always bet on himself, but always on 'ML'(moneyline, a resource that allows you to bet on who will win a certain fight, in the case of martial arts). Bet on who will win, not how they will win. There are also 'props' (which seek to determine the exact outcome), for example: 'the fighter will win in round 3', which generates a 'odds' (possibility of return on investment) higher. Due to the 'Props', the athlete may not fight naturally. He may want to extend the fight a little longer to win in round 3. You lose the naturalness of the fight. UFC took action and I agreed. Do not let fighters or anyone close to the fighters bet. It's difficult, but bookmakers, who are one of the biggest stakeholders, may very well, with their algorithms, identify suspicious, abnormal volumes of money entering a given bet. From there, notify authorities to carry out the appropriate investigations”, he explained.

Bernardo then recalled an episode related to James Krause, the coach mentioned above, banned from Ultimate on suspicion of involvement in illegal betting.

“I remember the case that happened in the UFC, with the fighter Darrick Minner (as mentioned above). He was a James Krause fighter. Both were banned. (…) James Krause was the trainer and sold betting tips. He had privileged information. He puts an injured athlete of his to fight. The Bookmakers identified a very large volume of money coming in, indicating the opponent's victory (Nuerdanbieke Shayilan) in the first round. In other words, if the Houses want, they can easily identify any type of manipulation. It is enough to have an easier communication channel between the Houses and authorities”, said Oliveira, who then points out another suspicious episode.

"david onama against Garrett Armfield (UFC Las Vegas 58). In this fight, I was left with nothing. I hadn't even bet on this fight. You could tell. As Julio César said: 'It's not enough to be honest, you have to appear honest'. End the fight and david onama thanks to 'Skinnybets', a bettor from the United States, who bet on the fight going beyond the middle of the second round. I don't know if they matched, but it gave that impression to the public. Onama had already faced Armfield in amateur MMA, winning in a unanimous decision (2018). From there to here, david onama has evolved a lot. After that, he practically knocked out or submitted him in every fight. In the first round (against Armfield, in the UFC Las Vegas 58), he (Onama) has a bureaucratic round and, in my opinion, he even loses. In the middle of the second round, it seems like half the round has passed, he prepares the katagatame and finishes. He was very suspicious. Another thing: david onama He was a James Krause fighter. I was outraged. The UFC promptly reformulated and improved its policy”, he concluded.

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