The FBI has arrested more than 30 players, coaches and other NBA affiliates in connection with an ongoing investigation into illegal gambling and insider betting. These indictments, which became unsealed in October, provide evidence of an alleged network of sports betting activity. They also exposed an underground poker operation, which they linked to organized crime. FBI director Kash Patel told the media that this was one of the largest gambling-related scandals in modern professional sports.
"Let's not mince words. This is the insider trading saga for the NBA, that's what this is,” Patel told ESPN.
Headlining these arrests was current Portland Trail Blazers head coach and future NBA Hall of Famer Chauncey Billups. Beside him on the pedestal of infamy is current Miami Heat guard Terry Rozier. After the allegations were released, the NBA placed both Rozier and Billups on administrative leave and announced that they will reconsider these consequences after the investigations are complete. Tiago Splitter has stepped up as the interim head coach for the Portland Trail Blazers, and young guards such as Jaime Jacquez Jr. and Norman Powell have seen increased minutes since Rozier’s leave.
League officials emphasized that maintaining the integrity of the game is a priority. These cases come at a time when legalized sports betting and prop bets on individual player performance have expanded, creating new oversight challenges. Each state has its own regulations and tax rates for sports betting. A handful restrict where you can place bets, such as only while someone is physically inside a casino or within a certain radius of a stadium. Others limit which betting platforms you can use or what aspects of the games you can bet on.
Experts say the surge in mobile betting platforms has made monitoring player-specific wagers more complicated, increasing concerns about potential exploitation. Because each state is allowed to make its own betting laws, there have been significant discussions regarding the legality of professional athletes betting on professional sports games, including their own.
“States sort of opened up a can of worms, and now some of them are starting to realize just how crazy this sports betting world sort of is,” said Wayne Taylor, a professor of marketing at Southern Methodist University, referring to the differences in gambling restrictions between states.
According to prosecutors, the cases involve allegations of wire fraud, money laundering, illegal gambling and extortion. Rozier is accused of sharing private information with others, including a claim that he would leave a game early due to injury. FBI investigators say this information was used to place “under” bets (a bet that a player will underperform in a certain statistic) on Rozier. From this, he received a portion of the earnings. Former NBA player and coach Damon Jones was named alongside Rozier with allegations that he provided confidential player information to bettors. Prosecutors indicated that some of the communication at the center of the case was tracked through encrypted messaging apps, which they say were commonly used to coordinate betting strategies.
In addition, Billups, Jones and other arrestees have been accused of running an underground poker operation. Prosecutors allege that some of these games were manipulated using specialized equipment, such as rigged card shufflers and hidden cameras. Patel noted that the poker operation spanned multiple states, including bases in Manhattan, Las Vegas, Portland and the Hamptons. According to the New York City Police Commissioner Jessica Tisch, the poker ring also involved cooperation between several organized crime rings, including the Bonanno, Gambino, Lucchese and Genovese families. The operations reportedly involved numerous significant financial transactions along with the use of multiple illegal methods to conceal the sources of the funds, such as wire fraud and money laundering.
Despite the controversy surrounding the situation, the NBA has not enacted any more restrictions on athletes placing bets. Currently, NBA players and affiliates are banned from betting on NBA games, but are still allowed to bet on other sports in locations where it is legal. The league generates a huge profit from participating in and advertising gambling services, with estimates from the 2023-2024 season projecting $160 million in revenue just from casinos and betting. In the past few seasons, the NBA has partnered with many gambling services such as FanDuel, DraftKings,and Caesars. These three alone account for over 10% of the total spent on advertising during NBA games.
However, the outcomes of these rulings remain pending as the NBA and federal authorities continue to review the situation. On Nov. 15, multiple teams throughout the league were asked to hand over phone records to the FBI, along with other records tied to the case. Beyond this, the league and the FBI have not released any significant information regarding the investigation. The situation raises questions about how professional sports leagues manage their interactions with different betting organizations, such as Underdog and FanDuel, and how these activities could affect the competitiveness of the league.
