I don't think it would be a disaster, bc many places to spend a stupid amount of money betting on sports exist already, so it wouldn't be a wholly new impulse into the system. But those venues are presumably highly regulated? So I can see how $100k of anonymous money betting on whether Lebron James misses five free throws in a row could raise hackles.
It's interesting to think about what it would mean, very concretely, to draw the gaze of Sauron on this stuff. Really forces you to have your story straight about the risks in this space, and how it touches the world.