Sherdog’s 2022 Story of the Year

It started out as a nondescript bout on the Ultimate Fighting Championship assembly line, a matchup that would likely be forgotten as soon as it ended under normal circumstances.

Instead, it is quite possible that the UFC Fight Night 214 clash between Darrick Minner and Nuerdanbieke Shayilan—which evolved into a full-blown gambling scandal complete with an ongoing FBI investigation—will be a topic of conversation for years to come. The ensuing fallout and long-term ramifications make it a runaway choice for Sherdog.com’s “Story of the Year” in 2022.

The bout itself ended in short order after Minner appeared to suffer a knee injury while throwing a body kick, setting the stage for Shayilan to finish the featherweight contest in just 67 seconds. Injuries happen in mixed martial arts, so that by itself was not especially unusual. However, the betting line shifted significantly in Shayilan’s favor just hours before the fight—including a significant amount of wagering on the Chinese athlete to win inside of a round—raising a red flag with bookmakers and drawing the attention of U.S. Integrity, an independent firm that works with the gaming industry to notify it of any suspicious activity.

Shortly thereafter, rumors began to circulate that Minner entered UFC Fight Night 214 with an existing injury that he failed to disclose on his pre-fight medicals. Meanwhile, the UFC launched its own review of the fight through betting integrity partner Don Best Sports, while initially stating that it did not believe anyone associated with the bout “was involved in any wrongdoing.” That turned out to be wishful thinking. Two weeks later, Glory MMA & Fitness leader James Krause was removed from Miles Johns’ corner at UFC Fight Night 215 due to the ongoing investigation. Krause, who also cornered Minner, is a well-known figure in the MMA gambling world thanks to a wagering podcast and a Discord channel where he offers tips on betting. Both were deleted once the investigation ensued.

In a best-case scenario, Krause, Minner and anyone else involved only failed to disclose the fighter’s injury because of stubborn, competitive resolve and the need to earn a paycheck. That would have simply led to a fine and suspension from the Nevada State Athletic Commission. The worst-case scenario is something far more nefarious: that Krause, Minner and others used inside information regarding the athlete’s injury to their benefit.

Other dominoes began to fall shortly after Krause’s removal from UFC Fight Night 215. First, the New Jersey Division of Gambling Enforcement sent a notice to the state’s sports books instructing them not to offer betting on any fight involving Krause as a “coach, trainer, promoter, or fighter.” The Alcohol Gaming Commission of Ontario (AGCO) took it one step further when it informed all sportsbooks in the province of Ontario, Canada, that they could no longer offer bets on UFC events going forward—whether Krause was involved or not. Alberta Gaming, Liquor and Cannabis briefly followed suit before later reinstating betting on UFC events.

The statement from the AGCO was especially damning and seemed to imply that it was more than just an isolated incident:

“In recent weeks, the AGCO has learned of publicized alleged incidents, including possible betting by UFC insiders, as well as reports of suspicious betting patterns in other jurisdictions.

“Therefore, the AGCO is now taking this step in the public interest. AGCO has indicated to operators that, once the necessary remedial steps have been taken, they may provide information demonstrating that UFC bets or other betting productions meet the Registrar’s Standards.

“The Standards exist to protect the betting public and to provide the necessary safeguards against odds manipulation, match-fixing and other integrity issues. This is not a decision we take lightly, knowing the popularity of UFC events in Ontario’s sports books. However, the risks of insider betting on event and wagering integrity should be highly concerning to all. It certainly is to us. We will continue to work with gaming operators, the OLG, iGaming Ontario and UFC to ensure that wagering on UFC events meets the AGCO’s Standards.”

At this point, a brief flashback seems appropriate. A few weeks prior to the Minner-Shayilan bout, the UFC announced a significant update to its code of conduct, as chief business officer Hunter Campbell sent out a memo prohibiting UFC “athletes, members of their teams and certain others” from wagering on fights within the Las Vegas-based promotion.

“As you may already be aware, most states in which regulated sports betting is conducted prohibit athletes from wagering on promotions or events with which they are affiliated. Many states also extend this prohibition to the athletes’ training teams, family members and others that have access to ‘inside information’ relating to the athletes and their events. In some instances, violations of these prohibitions could result in criminal charges,” the memo stated. “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 hindsight, that wagering prohibition update seems quite prescient given the series of events that transpired shortly thereafter. Keep in mind that the UFC has fully embraced its relationship with the gaming industry in recent years. In March 2021, the organization announced that DraftKings would become its first official sportsbook and daily fantasy partner in North America, inking a five-year deal reportedly worth more than $350 million. Odds are frequently listed during UFC bouts, gambling segments have become quite prominent on Dana White’s Contender Series episodes and veteran announcer Jon Anik has never been shy about sprinkling parlay tips into a broadcast.

In short, the gambling industry is big business for the UFC, and it behooves the promotion to be in the good graces with bookmakers. The UFC acted swiftly after regulating agencies began implementing restrictions regarding betting on the promotion’s events. Minner was cut from the roster—a move that by itself was not all that surprising given the Nebraska native’s three-fight losing streak in the UFC.

The sanctions were far harsher for Krause, who was not technically suspended by the UFC after being pulled from Johns’ corner. However, as the investigation progressed, fighters that had any affiliation with Krause—including training at Glory MMA & Fitness—would not be allowed to compete at UFC events until the probe concluded.

“Along with the safety and health of its fighters, UFC believes there is no more important component of professional mixed martial arts than the integrity of the sport,” read a statement from the promotion. “Weeks prior to the Minner fight, the organization sent formal notification to all fighters and members of their teams that they and certain other defined ‘insiders’ were prohibited from wagering on UFC events. This was an extension of UFC’s pre-existing (and since updated) fighter Code of Conduct as well as a recognition of various state, federal, and international laws and regulations expressly prohibiting conduct that threatens the integrity of the sport including, but not limited to, insider betting based on non-public information, fight-fixing, and other such misconduct. UFC will continue to take all necessary and appropriate steps to ensure compliance with and enforcement of its policies and those of the jurisdictions in which it operates.”

Though much of this story has yet to be told, it seems a very realistic possibility that Krause could be blackballed from the UFC, going down in history as an MMA version of Shoeless Joe Jackson, a standout player who was banned from Major League Baseball in 1920 for his role in a conspiracy to fix the World Series. While Krause had a respectable fighting career, he was not hall of fame-caliber at his craft like Jackson. However, since his retirement, he was gradually building a reputation as a respected coach who was building a solid stable of fighters at Glory MMA & Fitness. Instead, he may be forever remembered as the fall guy in the UFC’s first serious gambling scandal.

“In every sport, somebody thinks they’re smarter than everybody else when really they’re the dumbest guy in the room,” UFC President Dana White told ESPN. “And you will get caught—you will get caught and you will go to prison. It is what it is. If you’re that dumb and you’re willing to take that risk for money. Ruin your life for money. We can tell people until we’re blue in the face. Same thing as steroids, performance-enhancing drugs. ‘Don’t do it, USADA is testing, you’re going to get caught.’ But this is a whole other level... If you’re that stupid, have fun in prison.”