Former Ultimate Fighting Championship fighter James
Krause is about to find himself in a heap of trouble.
According to a report from the UFC’s broadcast partner of
ESPN on Thursday, the investigation into Krause has borne some
fruit. ESPN staff members were informed that Krause has worked
since 2019 as an agent for ABCBetting.ag, a sportsbook and casino
in Antigua. Krause’s role, as it has been described, was one that
would have him work as the go-between from the offshore book and
prospective bettors. Recruiting in those that would be willing to
be on events – most likely, fights – would be one major duty, one
that would likely accompany him with a share of the action.
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Those individuals stated that Krause offered them a line of credit
and login credentials to access the site, one stationed in Antigua
but based on Costa Rica. They allegedly paid Krause directly after
placing wagers on the site, and he offered them “kickbacks” should
they recruit others to bet with them. Krause would publicly admit
on podcasts that he made the majority of his earnings from betting
on fights, and openly stated that he would bet on practically every
fight the UFC put on. Occasionally, Krause would deviate into other
sports, if prominent members he was associated with made betting
suggestions.
For a U.S. resident to work as a go-between in this fashion,
according to
18 U.S. Code § 1084, is unlawful. As it pertains to the Federal
Wire Act, individuals cannot assist others in betting on interstate
or foreign books, unless it is otherwise permitted in that
location. Charges for this type of action could include tax evasion
or money laundering, depending on the level of involvement between
the agent from the U.S. and the foreign entity.
Krause ran a private Discord server that provided betting advice,
in which those would pay upwards of $2,000 per month in order to
access betting tips or even get Krause himself to take over their
account to place bets for them. The channel was subsequently shut
down weeks after an investigation into his matters began. At UFC
Fight Night 214 in November, the match between Nuerdanbieke
Shayilan and Darrick
Minner brought about suspicious betting activity, in which
money came in during fight night for Shayilan to win and earn a
stoppage. This resulted in Krause’s subsequent ban from the UFC,
and a few locations including New Jersey and the Canadian province
of Alberta to ban betting on Krause-involved matches or the UFC
altogether.
One of Krause’s students at the team of Glory MMA & Fitness, UFC
flyweight Jeff
Molina, has also been indefinitely suspended while this
investigation plays out. Per ESPN, who acquired screenshots of
posts made by Molina, the fighter embarked on an effort to recruit
prospective bettors to sign up for the betting service and account
takeovers.
“He’s trained [with a] lot of the fighters, lives and breathes this
sport as a coach/fighter, [and] at times has the scoop on injuries
– non-announced matchups – how fighters look like in camp, etc,”
Molina wrote, as transcribed by ESPN. “In stocks this is called
insider trading in MMA betting it’s called James
Krause. For the last six months all my bills including mortgage
and car note have been paid via Krause’s picks. Do yourself a favor
and join the VIP.”
Up until last October, the UFC allowed fighters or anyone involved
in their training to bet on UFC fights, including their specific
bouts. This type of betting activity is prohibited in about half of
the states in the U.S., although most leave it to the local
sportsbooks while even fewer have penalties on the books in the
case of violations. In October 2022, the UFC put forth a policy
that prohibited fighters from betting on any MMA matches, no matter
their involvement. This extends to coaches, training partners and
close family members.