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.
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.
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