World #1 ranked tennis star Roger Federer wants to know why his name is involved in a betting lawsuit involving the CEO of IMG, the sports management company that represents him.

Agate Printing Inc. accused IMG chairman Ted Forstmann of using inside information from Federer to increase a bet on the 2007 French Open men’s singles final. According to their testimony, Forstmann placed separate wagers totaling $33,000 the day before the 2007 final and increased a bet from $11,000 to $40,000 on the 2006 French Open final after talking with Federer.

Federer lost both of those matches to Rafael Nadal.

Agate is suing Forstmann for fraud, interference with contract and breach of contract. They are also seeking damages for lost business Forstmann allegedly promised. Agate Printing executive Jim Agate claims to have aided Forstmann in his gambling and his company served as a go-between for hundreds of Forstmann’s sports bets.

Federer has denied any involvement and asked Forstmann to provide an explanation of why his name is being included in the investigation. Forstmann does not represent Federer. Tony Godsick of IMG is his agent.

Forstmann said he has bet on Federer and gambled on sports in general, but rejects the claim that he increased bets on Federer after talking with him. Forstmann said they are friends, but any call to Federer, including the one before the match in 2007, would have been just to wish him luck. Federer said he doesn’t have any knowledge of Forstmann’s betting habits.

You may be thinking it should be illegal for sports agents to gamble on players, especially ones that their company represents. Me, too. But, Grand Slam tennis tournaments have rules barring only players from gambling on matches. There are no rules stopping agents or other members of player entourages from betting on tennis. In 2007, there were no rules stopping players from providing “insider information” to a gambler, but that was changed in January 2009 amidst concerns of potential match-fixing.

IMG is a global sports, entertainment and media business that represents other top tennis players like Rafael Nadal, Venus Williams and Maria Sharapova. It also represents golfer and recent PR nightmare Tiger Woods and owns and operates some professional tennis tournaments.