Bookie Tied To Ohtani’s Interpreter Says Half Of All Pro Athletes Gamble On Sports

Key Concepts:

• Illegal bookmaking operation
• Money laundering
• KYC (Know Your Customer) and source of funds laws
• Gambling addiction/problem gambling
• Integrity of sports
• Legal vs. illegal gambling markets
• Credit lines in gambling
• Tax arbitrage
• Wire transfers
• Venmo/Cash App
• Statistical analysis for detecting corruption in sports

1. Background and Arrest:

• Matthew Ber, a former large-scale illegal bookmaker, discusses his operation and the events leading to his arrest.
• In October 2023, his house was raided by 29 FBI agents due to a Las Vegas investigation related to KYC violations at casinos.
• He was sentenced to 12 months and one day in prison and is scheduled to surrender on October 10th.

2. Operation Details:

• Ber's operation took over $1 billion in wagers in 2023.
• He differentiated himself by paying winners promptly, building relationships with clients, and accepting large bets (e.g., million-dollar bets on football games).
• One customer wagered $326 million over 18-20 months, placing 19,000 bets.

3. Meeting Shohei Ohtani's Interpreter, Ippei Mizuhara:

• Ber met Ippei Mizuhara, Shohei Ohtani's interpreter, at a poker game in September 2021.
• Mizuhara initially had a small account with an $8,000 credit line, which quickly escalated.
• Mizuhara's largest single bet was $160,000 on a soccer game, though Ber had capped him at $100,000 per game.

4. Recognizing Mizuhara's Gambling Problem:

• Ber realized Mizuhara had a gambling problem within six weeks of meeting him, noting his compulsive betting on obscure soccer games.
• Ber didn't know the wire transfers were from Shohei Ohtani until the third transfer.
• Initially, Mizuhara had an $8,000 credit line, which Ber raised to $40,000, then $300,000, before requiring a wire transfer.
• After Mizuhara showed proof of payment, Ber extended his credit to $500,000.

5. Wire Transfers and Ohtani's Involvement:

• The first wire transfer from Ohtani's bank account occurred around November or December 2021.
• Ber's reaction was "absolutely holy" because he realized the potential for "unlimited funds."
• Ohtani has denied gambling and Mizuhara has admitted to stealing money from Ohtani without his knowledge.

6. Integrity of Sports and Legalized Gambling:

• Ber believes the proliferation of legalized sports betting will lead to more problems with individuals doing things they shouldn't.
• He cites examples of college and professional athletes facing accusations of compromising the integrity of sports.
• He argues that the leagues are making a lot of money off of gambling and endorsements, but the integrity of the sport is imperative.
• Ber suggests that extremely harsh punishments are needed to deter athletes from gambling.

7. Clients and Avoiding Rigged Games:

• Ber had clients who were CEOs and well-known individuals, but none were betting on their own sports or rigging games.
• He avoided involvement in rigged sports to avoid severe legal consequences.

8. Legal vs. Illegal Gambling Markets:

• Ber argues that strict KYC requirements at legal casinos and sportsbooks are driving people to illegal bookmakers.
• People may want to hide their gambling from their families and avoid traceable transactions.
• Illegal bookmakers offer credit, which is essential for many gamblers who want to bet on multiple games without waiting for results.
• He estimates there are over a million bookmakers in the US, many operating on a small scale.

9. Tax Arbitrage and the Marijuana Industry:

• Ber notes similarities between illegal gambling and other vice industries like tobacco and marijuana, where tax arbitrage drives illicit activity.
• He mentions that many marijuana dispensary owners used his services to wash money, paying in cash and receiving winnings via wire transfer.
• High taxes in the legal marijuana industry in California force many businesses to operate in the "dark area" to survive.

10. Mizuhara's Credit and Ber's Perspective:

• Mizuhara owed Ber $24 million, which he doesn't expect to receive.
• Ber continued to offer Mizuhara credit because he was receiving $500,000 payments every few weeks and wanted to give him a chance to win some money back.
• Ber believed Mizuhara would have continued to pay if the operation hadn't been raided.
• Ber views his role as providing a service, taking action on bets that Mizuhara chose to make.

11. Responsibility and Impact:

• Ber acknowledges his role in the scandal and its potential impact on baseball.
• He cooperated with the federal government to show that Ohtani never placed wagers.
• He feels he is a "fall guy" for the Vegas part of the investigation.

12. Detecting Corruption in Sports:

• Ber believes companies that look for weird or strange transactions are effective in detecting problems.
• He suggests that MLB, NFL, and other leagues should have their own companies to monitor gambling activity.
• He notes that even illegal bookmakers do not want the integrity of the game to go away.

13. Pervasiveness of Insider Trading:

• Ber has heard about rigging in lower-level tennis and one major UFC fight.
• He notes that the color of the Gatorade at the Super Bowl is often known in advance due to professional sharp algorithm people.

14. Future Plans:

• Ber plans to rebuild his brand and become a better version of himself.
• He aims to inspire and motivate others by sharing his story of overcoming adversity.
• He hopes to work with athletes and college teams to prevent them from making mistakes related to gambling.

Notable Quotes:

• "My operation was ran very clean." - Matthew Ber, describing his bookmaking operation.
• "I didn't view him as an interpreter. I viewed him as a customer that was paying." - Matthew Ber, explaining why he extended credit to Ippei Mizuhara.
• "I do believe show Atani never gambled and bet sports. But was he aware? Did he help his friend?" - Matthew Ber, questioning Ohtani's potential knowledge of Mizuhara's activities.
• "At the end of the day, a bookmaker, legal or illegal, is a service." - Matthew Ber, describing the role of a bookmaker.

Technical Terms:

• KYC (Know Your Customer): The process of verifying the identity of a customer, typically used by financial institutions and casinos.
• Money Laundering: The process of concealing the origins of illegally obtained money.
• Tax Arbitrage: Exploiting differences in tax rates between jurisdictions to minimize tax liability.
• Handle: The total amount of money wagered.
• DGEN: Short for "degenerate gambler."

Synthesis/Conclusion:

The interview provides a detailed look into the world of illegal bookmaking, highlighting the scale of Matthew Ber's operation, his relationship with Ippei Mizuhara, and the broader implications for the integrity of sports. Ber's insights shed light on the reasons why people continue to use illegal bookmakers despite the availability of legal options, the challenges of regulating gambling, and the potential for corruption in sports. The discussion also touches on the parallels between illegal gambling and other vice industries, such as marijuana, where tax arbitrage and regulatory hurdles drive illicit activity. Ultimately, the interview offers a cautionary tale about the risks and consequences of illegal gambling and the importance of maintaining integrity in sports.