I’m a bit late to the story of Pete Rose admitting he bet on baseball—a story that was actually supposed to be embargoed until his appearance on ABC’s Primetime Live, but no matter (earlier reactions include John Cole’s and Michele’s; everyone in my blogroll who has an RSS feed and had something to say about it is listed here) . I think Larry Ribstein’s reaction one of the more interesting, though I don’t think it gets to the heart of the problem with stated betting on baseball.
That Rose bet on games involving the Reds is the big “no-no” issue; if he’d simply bet on other teams, he’d have received a one year suspension. The key question is what is the harm to Baseball from Rose’s bets?—and, by Baseball, I mean the institution that everyone has been saying Rose sullied. Since nobody claims he actually bet against the Reds, it’s hard to charge him with throwing games; he may have had an extra incentive to win in games he wagered on, but that isn’t throwing a game, and unlike other sports baseball betting is normally on the “money line”—you pick straight-up, not against a point spread—so “point shaving” (or “running up the score“) isn’t an issue. (You can also bet other sports, like football, on the money line, but that isn’t very popular.) Rose’s interest as a bettor coincided with his unbiased interest as a manager.
Now, some have argued that because Rose didn’t bet on every single game, and that he apparently got inside information from other managers (including those in the AL—the Reds are an NL team, and before interleague play intelligence on AL teams was pretty useless for NL managers), his behavior is somehow corrupting to Baseball. Because Rose didn’t bet on all games involving the Reds, the argument is that bookies knew that the Reds were less likely to win the game. Even if that’s true, it’s hard to see how Baseball is harmed. The victim is whoever was on the losing side of the bets lodged by Rose’s bookies because of the informational advantage they had—unless Baseball was betting on games, they weren’t harmed at all. Similarly, Rose’s intelligence on other teams only harmed other bettors—not Baseball. And, ultimately, since virtually everyone who was involved was violating numerous state and federal laws against sports wagering—the harm was to people who were already engaging in illegal conduct. If a thief breaks into a drug dealer’s house and steals his TV, the thief’s criminal act doesn’t absolve the dealer for buying home electronics from the proceeds of his own illegal act.
Now, there are other reasonable arguments against Rose’s betting: that it potentially created the appearance of corruption: for example, that it placed him in a position where he might be able to throw games to have his gambling debts reduced. But there doesn’t seem to be evidence that Rose threw games—and, in general I find “appearance of corruption” arguments specious. You can also argue that Rose harmed Baseball as an institution by denying the allegations for 14 years and impugning the credibility of his accusers and other opponents, including then-NBC reporter Jim Gray (who now spends his time about as far up Kobe Bryant’s ass as Ahmad Rashad was up Michael Jordan’s). And Rose’s frequent appearances in Cooperstown, New York haven’t exactly endeared him to the MLB brass. But Rose’s betting, alone, apparently had no ill effects on Baseball.
Update: John Jenkins disagrees with my assessment, as does David Wright via email; both raise essentially the same point (I'll quote John’s post):
Rose's gambling on the Reds changed the way Rose managed games. Baseball has a 162-game season. When Rose had money riding on a game, he would obviously be managing to win that game at the expense of future games. Suppose Rose was clinging to a one-run game going into the ninth and his closer had pitched the last three days straight and his arm was sore. Rose might pitch the guy to win that game because he had money on it, and then cost the team 3 games over the next 2 weeks that they could have won if that pitcher could have rested that day.
I do agree that having money riding on the game might pervert Rose’s incentive structure—and my overlooking that fact may go to show you how much I really care about baseball as a game. On the other hand, Rose’s mediocrity as a manager is such that he might have made decisions that were weak over the long term anyway, even without the monetary incentive to do so.
Another update: Brian of Redbird Nation makes a compelling case for a shorter-than-lifetime ban for Pete Rose.