James Krause betting controversy: UFC 287 fighter seemingly admits to insider betting, MMA world fears "severe ramifications"

The UFC has been particularly uncompromising when it comes to betting rules considering the latest developments in recent times that have shocked everyone. The MMA world was rocked by the James Krause betting controversy, which landed the former fighter-turned-coach in hot water.

Krause acted as an intermediary or agent between an offshore sportsbook and bettors as early as 2019. In this capacity, Krause provided bookmakers with a credit line and login credentials. According to sources, these gamblers placed wagers on the offshore wagering site and paid Krause directly through Venmo or PayPal. According to reports, Krause also offered bookmakers compensation for referring additional gamblers to him.

At UFC 287, women's strawweight contender Sam Hughes scored a unanimous decision victory over Jaqueline Amorim (29-28, 29-28, 29-28). Following her victory, she addressed the media and appeared to admit to an insider betting tip.

Hughes stated that her boyfriend had bet $1000 on her to win, despite the fact that the rule explicitly prohibits fighters, coaches, team members, or family members from betting on fights in the promotion.

MMA fans were concerned for Hughes considering she might face some ramifications for this. One fan wrote:

"Yeah, that's a real unforced error right there. "Any other person with access to non-public information regarding participants in any MMA match" definitely would include a fighter's significant other/partner."

Another fan claimed that Hughes should backtrack from her statement and just dismiss it as a prank:

"She needs to tweet out immediately that her boyfriend was just pranking her and that he didn't bet on her."

Yet another fan wrote:

"Two words: James Krause"

UFC passed a memo following James Krause betting controversy

The UFC announced in a memo sent to athletes and team members last year that no fighter, coach, team member, or family member is permitted to wager on fights.

The news came about two and a half months after retired MMA fighter-turned-coach James Krause told Ariel Helwani that he makes far more money betting on and promoting fights than he does coaching.

Krause reportedly offered wagering advice for a fee on a Discord server with approximately 2,400 members. The organization's Chief Business Officer Hunter Campbell wrote in the memo:

“The UFC’s contracted athletes are not exempt from these prohibitions, which state legislators and regulators have implemented for the purpose of maintaining the integrity of our sport. In order to assist our athletes in understanding their obligations under the laws of the majority of states in which sports betting is permitted, and in further support of these integrity measures, UFC has incorporated a wagering prohibition into the Athlete Conduct Policy expressly prohibiting athletes from wagering on any match.”