NBA gambling scandal explained: What the indictments against players and coaches reveal

NBA insider betting and Mafia

US federal prosecutors on Thursday unsealed two indictments that sent shockwaves through professional basketball. Among those arrested were Chauncey Billups, the head coach of the Portland Trail Blazers and a Hall of Fame player, and Terry Rozier, a veteran guard most recently with the Miami Heat. The cases detail an alleged web of illegal sports betting and rigged poker games, involving former and current NBA players, coaches, and members of four New York Mafia families, the New York Times reported.

One case focuses on the use of insider information to profit from legal online betting; the other centres on high-stakes underground poker games where unsuspecting victims were cheated out of millions.

What the insider-betting case alleges

Six people were charged for using confidential NBA information — such as player injuries and lineups — to make fraudulent bets. Prosecutors said Rozier and Damon Jones, a former player and assistant coach, were key figures. Between December 2022 and March 2024, they allegedly shared inside details and urged associates to place bets through legal platforms, laundering winnings through multiple accounts.

In one incident, Jones allegedly tipped off gamblers that a “prominent Los Angeles Lakers player” would miss a February 2023 game against the Milwaukee Bucks. That player was later revealed to be LeBron James, who sat out with an ankle injury. James himself has not been accused of wrongdoing.

Rozier, meanwhile, was charged with deliberately influencing his in-game performance while playing for the Charlotte Hornets — exiting a match early after telling associates to bet on his failure to reach certain statistical targets.

How the Mafia poker scheme worked

The second indictment links Billups, Jones, and several others to an illegal poker operation that prosecutors say was run by members of the Bonanno, Gambino, Genovese, and Lucchese crime families. Billups was described as a “face card” — a celebrity participant used to lure wealthy victims to private games in Manhattan.

Once inside, the victims were allegedly cheated using high-tech devices that gave Billups’s “teammates” an advantage. The Mafia-run ring reportedly stole more than $7 million, with one victim alone losing $1.8 million. Prosecutors said Billups was paid to attend and lend legitimacy to the games.

Why this case matters for the NBA

The scandal breaks just as the NBA begins a new season and prepares to cash in on $76 billion in media and gambling-related deals over the next decade. The league has embraced betting partnerships with companies like DraftKings and FanDuel, making integrity a critical issue.

While sports betting is legal in most U.S. states, it remains a crime to use nonpublic information or influence outcomes for financial gain. “Legal” gambling assumes all bettors have equal access to information and that players compete fairly — principles these indictments directly undermine.

NBA Commissioner Adam Silver has already urged betting companies to restrict proposition bets, which allow wagers on player-specific stats, arguing they pose greater risk to integrity — particularly for lower-paid players.

How the league and law enforcement responded

FBI Director Kash Patel said the combined schemes generated “tens of millions” of dollars in illicit gains. The Bureau described it as a rare intersection of organized crime and professional sports.

The NBA released a brief statement saying it was “aware of the indictments and cooperating fully with federal authorities.” The Portland Trail Blazers have placed Billups on immediate leave, pending further legal developments.

What comes next

If convicted, Rozier and Jones could face multi-year prison terms for wire fraud, insider trading, and conspiracy. Billups and others in the poker case face charges of illegal gambling, racketeering, and money laundering. Legal analysts say both cases could reignite debates over how deeply professional sports should integrate with the booming online betting industry.

For now, the message from prosecutors is clear: the line between legal wagering and criminal manipulation remains thin and heavily policed.