Schlichter was picked fourth in the
1982 NFL draft by the
Colts franchise, then based in
Baltimore, Maryland. Expected to be the starter, Schlichter lost the job to
Mike Pagel, the Colts' fourth-round pick in that year, when he appeared at practice out of shape and in a distracted state of mind. However, he was expected to be the Colts' quarterback of the future. Schlichter's gambling continued unabated, to the point that he blew his entire $350,000
signing bonus by midseason. Even before the Colts picked him, he already owed
bookies several thousand dollars. By the end of the strike, he had at least $700,000 in gambling debts. Years later, Schlichter said his massive losses stemmed from desperate efforts to make good his previous losses. After losing $20,000 in the first week of the strike, he doubled up the next week and lost again—starting a cycle that would continue for over a year. Schlichter was reinstated for the
1984 season but later admitted that he'd gambled during his suspension (though not on football). He was released five games into the
1985 season, in part because the Colts heard rumors that he was gambling again. It would be Schlichter's last meaningful action in the NFL. He signed as a
free agent with the
Buffalo Bills in the spring of
1986. However, his tenure with the Bills effectively ended when the
United States Football League (USFL) collapsed.
Jim Kelly, the Bills'
1983 first-round pick, had bolted to the USFL instead but signed with the Bills when the league "won" its
antitrust lawsuit ($1.00 damages trebled to $3.00); the Bills had intended all along for Kelly to be their quarterback. With Kelly now firmly in the Bills fold, Schlichter's services were no longer necessary. He sat out the 1986 season after no other team expressed interest. In January 1987, Schlichter was arrested in
New York City for his involvement in a multimillion-dollar sports betting operation. He pleaded guilty to
illegal gambling in April and was sentenced to
probation. In an updated list from 2010, Schlichter was moved to the #4 draft bust of all time, and in a video listing the top ten quarterback draft busts of all time, Schlichter was listed #3, behind
JaMarcus Russell (#2) and
Ryan Leaf (#1). In 2007, Charles Robinson of
Yahoo! Sports named Schlichter the worst #4 pick since the
AFL-NFL merger, writing that Colts fans long felt chagrin that
Jim McMahon was taken by the
Chicago Bears with the very next pick. McMahon would lead the Bears to victory in
Super Bowl XX during Schlichter's final NFL season. In 2021,
The Athletic named Schlichter the worst #4 pick since the merger, noting that the Colts selected him with McMahon and future
Hall of Fame running back Marcus Allen on the board. Schlichter said years later that he was distracted for much of his NFL career. He went through a messy break-up with his girlfriend before his rookie season with the Colts, and the ensuing
depression led him to gamble more. Schlichter believed the accolades he received after his sophomore year at OSU diminished his drive, and the pressure of living up to that praise led him to gamble as an outlet. His AFL success was attributed to his frequent deep passes, which caught opposing defenses off guard in an era when most AFL offenses relied on short passes. Ahead the
1992 season, Schlichter was traded to the expansion
Cincinnati Rockers, with league officials believing his popularity in Ohio would generate interest for the franchise. Schlichter helped lead the Rockers to the playoffs in their inaugural season, evidence later came to light that Schlichter was forced to retire rather than face being banned from the league for betting on AFL games. ==Radio career==