High profile NBA figures were among those arrested in connection with a multi-million dollar gambling ring linked to the mafia, sparking renewed calls for federal regulation.
FBI Director Kash Patel on Thursday said Miami Heat player Terry Rozier and Portland Trail Blazers head coach Chauncey Billup were among 31 people arrested in more than 11 states.
Highlights
- FBI arrested 31 people including NBA stars Rozier, Billups, and Damon Jones in a mafia-linked, multi-million dollar gambling ring across 11 states.
- Two indictments target mafia-rigged poker games using tech cheats and NBA players exploiting insider info for profitable sports betting.
- Insider betting involved leaking non-public injury and lineup news to place timed bets on NBA games, leading to profits from early insider tips.
- Illegal poker ring used rigged shuffling machines, special lenses, and hidden cameras to cheat victims out of at least $7 million since 2019.
Former Cleveland Cavaliers and Miami Heat player Damon Jones was also arrested.
FBI Director Kash Patel. Image credits: Michael M. Santiago/Getty Images
The arrests stem from two parallel indictments, one targeting the mafia-linked poker operation, and another accusing several current and former NBA players of using confidential team information to profit from insider sports betting.
“The FBI dismantled a multi-million dollar gambling ring tied to La Cosa Nostra, including current & former NBA players and coaches — as well as an inside scheme to rig sports betting outcomes for profit,” Patel wrote on X.
“Cheating, corruption, and laundering have consequences. We followed the money, and the law caught up.”
What is alleged in the insider information sports betting indictment?
The sports-betting indictment outlines how certain players and associates allegedly used non-public injury and lineup information from within NBA teams to place lucrative bets on player performance and game outcomes December 2022 and March 2024.
Seven games have been identified and in some cases, bets were timed within minutes of that inside information being confirmed, according to court documents.
Miami Heat player Terry Rozier. Image credits: Tomas Diniz Santos/Getty Images
Six people – Eric Earnest, Marves Fairley, Shane Hennen, Damon Jones, Deniro Laster, and Terry Rozier – have been charged in connection with the indictment.
- March 23, 2023 – Charlotte Hornets Game: Rozier allegedly told Laster he would leave early with an injury. Laster and others bet over $200,000 on Rozier’s underperforming. Rozier exited after nine minutes, and the group profited tens of thousands, which they later counted together at Rozier’s home.
- March 24, 2023 – Portland Trail Blazers Game: A coach allegedly tipped Earnest off that several Blazers starters would sit out. Before the news broke, over $100,000 was wagered against Portland. When lineups were confirmed, odds shifted and the early bets paid off.
- April 6, 2023 – Orlando Magic Game: Fairley allegedly received a tip via a Magic player that key teammates would miss the game. He bet about $11,000 on the Cavaliers to cover the spread; Cleveland won by 24, yielding a strong payout.
- February 9, 2023 & January 15, 2024 – Los Angeles Lakers Games: Jones allegedly sold insider medical and lineup information about Lakers players to co-conspirators, who used it to place significant wagers ahead of public disclosure.
- January 26, 2024 & March 20, 2024 – Toronto Raptors Games: Porter, then an NBA player, allegedly told Long Phi Pham he’d exit both games early with fake injuries. Pham relayed the info to Hennen and Fairley, who placed bets on Porter’s underperformance. Porter left early both times, and many wagers succeeded.
Portland Trail Blazers head coach Chauncey Billup. Image credits: Steph Chambers/Getty Images
Porter and Pham, among others, have previously pleaded guilty in connection to their participation in the scheme related to the Toronto Raptors Games.
Rozier, Billups, Fairley and Hennen have denied all allegations against them.
The NBA has since placed both Billups and Rozier on administrative leave pending the outcome of the criminal proceedings.
A league spokesperson said the association is “fully cooperating with federal authorities” and emphasized that “the integrity of our game remains paramount.”
What does the illegal poker game indictment say?
Prosecutors described the gambling ring as a “highly sophisticated and lucrative fraud scheme” aimed at cheating victims out of millions of dollars and funneling money to La Cosa Nostra.
Victims lost a collective total of at least $7 million during the rigged poker schemes, according to the FBI.
“Well-known former NBA players and former professional athletes, acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games,” U.S. Attorney Joseph Nocella said.
Authorities announced the two indictments on Thursday. Image credits: FBI
Nocella said victims were then “at the mercy of concealed technology,” such as rigged shuffling machines and specially-designed contacts lenses and sunglasses that could read the backs of playing cards.
Members from four of New York’s organized crime families were involved in the plot, and when victims refused to pay, “they used threats, intimidation, and violence,” NYPD Commissioner Jessica Tisch added.
A seven-count indictment alleges that the scheme began as early as 2019 and underground illegal poker games were secretly rigged—most commonly, Texas Hold’em.
The rigged games are said to have used altered shuffling machines that contained hidden technology allowing them to read all the cards in the deck. Because the cards were always dealt in a particular order to the players at the table, the machines could determine which player would have the winning hand.
Games were rigged to scam victims out of cash. Image credits: Tobias Hase/picture alliance via Getty Images
The information was communicated by members of the scheme who weren’t in the room to players at the table, who then used that information to win the poker games.
Victims reportedly lost tens or hundreds of thousands of dollars at a time, and the indictment states that the cash was then laundered.
Other technology involved in the illegal scheme included a chip tray analyzer that could secretly read cards using hidden cameras, an x-ray table that could read cards face down on the table, and special contact lenses or eyeglasses that could read pre-marked cards.
Technology was involved in the illegal scam. Image credits: Fairfax Media via Getty Images via Getty Images
The indictment further alleges members of the conspiracy committed violent acts, including assault, extortions, and robbery, to ensure the repayment of debts and continued success of the operation.
The poker enterprise was allegedly backed by associates of the Bonanno, Gambino, and Genovese organized crime families, who had already controlled underground gaming operations across Manhattan.
The indictments have sparked renewed calls for federal regulation
A federal law prohibiting sports betting outside of Nevada was struck down by the Supreme Court in 2018 and since then, D.C. and 38 states have legalized sports gambling.
There are renewed calls for further regulation on sports betting, specifically on prop bets which allow gamblers to bet on player statistics and game underperformance.
NBA Commissioner Adam Silver told The Pat McAfee Show on Tuesday that he supported further gambling regulation.
There are calls to regulate NBA prop bets. Image credits: Nic Antaya/Getty Images
"We've asked some of our partners to pull back some of the prop bets, especially when they're on two-way players, guys who don't have the same stake in the competition, where it's too easy to manipulate something, which seems otherwise small and inconsequential to the overall score," Silver said.
"We're trying to put in place – learning as we go and working with the betting companies – some additional control to prevent some of that manipulation."
He added: "We have to protect the competitors. We want to protect the environment in the arena of people getting out of hand."
There are also calls for Congress to tighten the rules in the hopes of preventing future scandals similar to the indictments filed Thursday.
Senator Richard Blumenthal introduced the SAFE Bet Act alongside Representative Paul D. Tonko earlier this year.
The legislation would create nationwide consumer protections and standards for the mobile sports gambling industry, addressing the public health implications resulting from the widespread legalization of sports betting.
In a statement on X responding to the indictments, Blumenthal said he would continue to fight for federal legislation.
“These troubling indictments come as no surprise when we have allowed the betting industry to corrupt sports—becoming more entrenched in every aspect of the game without meaningful national guardrails to protect fans & victims of gambling addiction,” Blumenthal wrote.
Victims of the scam were conned out of thousands at a time. Image credits: Costfoto/NurPhoto via Getty Image
“I will continue to fight for federal legislation that provides safeguards against the excesses & abuses that lead to the kind of wrongdoing highlighted by these indictments.”
Top Democrat on the Senate Judiciary Committee Dick Durbin also said he was committed to tackling prop betting, the Washington Post reported.
“The temptation for athletes, seasoned coaches, and professional officials to adjust performances is real. Sadly, scandals are becoming more and more frequent,” Durbin said.
He added: “Congress, states, and sports leagues must all work to maintain the integrity of sports and prevent future sports betting scandals,” after the Supreme Court “struck down commonsense federal law in 2018.”