James Krause became the centre of a betting scandal later this year despite the UFC banning its fighters from being involved in any betting activity in October 2022.
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Following the November 5, 2022 fight between Darrick Minner and Shayilan Nuerdanbieke that resulted in multiple gambling investigations, The Nevada State Athletic Commission (NSAC) informed James Krause on November 18 that his corner license was suspended and would remain so as the commission conducts investigations.
On November 5, Krause’s trainee Darrick Minner lost his fight with Shayilan Nuerdanbieke via a 1:10 TKO due to injury. However, reports claim that the injury is said to have been known by gamblers ahead of the fight.
On August 1, 2022, James Krause discussed his betting business on Ariel Helwani’s show, the MMA Hour with Ariel Helwani. In his own words:
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“I bet every single card just about every fight,” Krause said. “I have a Discord [server], like 2,000 members in it, we crush it. Last week, we destroyed it. I take over people’s accounts and play for them, I do pretty well. I make more money gambling on MMA than I do anything else
“I don’t make s—t on coaching,” he continued. “Absolutely not. I mean, if you’re talking about time, if I go out on a Wednesday to a Sunday and make 10 percent off a guy … if we’re not talking about Brandon Moreno, most of my guys are entry-level guys making 12/12 (to show/to win), 14/14. I have some guys making in the 20s but even at that, you get 10 percent of 20,000, it’s 2,000 and I’m on the road every weekend Wednesday to Sunday. It just doesn’t — no. It’s not even close.”
On October 1, 2022, The UFC released a statement banning fighters from participating in any gambling activity for any UFC event. The organization also released a statement issuing a notice to all fighters involved with James Krause on December 2, 2022.
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