If Pete bet on baseball games, fine. If Pete bet on the Reds to win their games when he was managing them, fine. BUT, if Pete bet on the Reds to LOSE games, or on the point spread of the Reds games, well then YES, we have a really big problem, and I might be inclined to say leave the lifetime ban on him... But those are the only 2 gambling scenarios that I would consider to be serious enough to keep him out of the Hall.
Pete Rose always bet on the Reds to win. The biggest question marks seem to be about how he'd manage the team the day before a game he bet on. Would he bet on his strongest starter? Would he let the previous day's pitcher hang out to dry, so he could keep the bullpen fresh for the following day? Would he not use his bench players the day before he bet? And furthermore, would his bookies know how he operated, and bet on the Reds to lose the day before a game Pete bet on, and then bet them to win the day he bet? It really casts a negative light on the integrity of the games he was involved in.