Following closely on the heels of an engaging NBA evening that featured Cooper Flagg’s initial performance after being the No. 1 overall draft pick, Victor Wembanyama’s noteworthy return with a 40-point showing, and Anthony Edwards securing 41 points in a victory, the sports community was surprised by the revelation that 34 individuals — among them Chauncey Billups and Terry Rozier — were apprehended in connection with probes regarding alleged unlawful sports wagering and manipulated poker events linked to Mafia associations.
There’s considerable information to process, so below are the salient facts concerning the FBI’s inquiry into what it has designated as unauthorized gaming activities.
Who is involved?
The most prominent figures include Billups (the current head coach of the Portland Trail Blazers), Rozier (currently a guard for the Miami Heat), and Damon Jones, a former NBA athlete and coach. These individuals were part of a group of 34 arrested in connection with a series of extensive — and still active — investigations targeting purported illegal sports betting and fraudulent poker games that transpired in areas such as Las Vegas, The Hamptons, and New York City. The FBI reports that these illicit poker games were supported by various Mafia groups.
Both Billups and Rozier were formally charged during their initial court appearances on Thursday and subsequently released after posting bond. Through their legal representatives, they have both refuted the accusations.
What are the 2 investigations?
The gambling investigation encompasses two distinct but interconnected cases: Operation Nothing But Bet and Operation Royal Flush.
The indictment related to sports betting names Rozier, Jones, and four additional defendants. According to the indictment, between December 2022 and March 2024, the defendants participated in a plan to deceive betting agencies by “supplying, acquiring, and utilizing privileged information regarding NBA matchups to make and facilitate the placement of fraudulent sports bets for monetary gain, and subsequently laundering the resulting proceeds.” Moreover, a “Co-conspirator 8,” not specifically named in the indictment, corresponds to Billups’ description.
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The federal authorities assert that the illegal poker operation involved upwards of 30 individuals, including Billups and Jones. The investigation traces the scheme back to at least 2019, pointing to the defendants and their accomplices rigging or cheating at unlawful poker events. Several organized crime units were also implicated, providing backing for the games and pursuing debts in exchange for a portion of the gambling revenues. Billups and Jones were utilized as “celebrity faces” to attract players (“fish”) into engaging in the manipulated poker games.
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U.S. v. Aiello Et Al. Indictment by pmcnamee
What are the charges?
Both Rozier and Billups have been formally charged with conspiracy to commit wire fraud and conspiracy to launder money.
Who are the individuals involved in both cases?
There are three individuals who are named as defendants in both sets of cases: Damon Jones, Eric Earnest, and Shane Hennen. Jones is accused of leveraging his celebrity status to attract individuals to rigged poker games, and using his connections to furnish inside information on NBA contests to his co-defendants, who then utilized this non-public data to make profitable sports wagers at both online platforms and physical casinos. Although he was named specifically in the indictment regarding the illegal poker ring, Billups also meets the description of a co-conspirator in the indictment for the illegal betting scheme. It is alleged that the co-conspirator provided information to Earnest, revealing that the Blazers intended to “tank” their final 10 games of the 2022-23 season by sidelining key players.
Has the NBA responded to the arrests?
The NBA issued a statement on Thursday afternoon, stating:
“We are currently reviewing the federal indictments that have been announced today. Terry Rozier and Chauncey Billups are being placed on immediate leave from their respective teams, and we will continue to cooperate with the relevant authorities. We are taking these allegations extremely seriously, and the integrity of our game remains our highest priority.”
What does the NBA manual say about gambling?
According to ESPN’s Bobby Marks, regarding Permitted Gambling:
“Governors, team investors, team and league employees, players, excluding referees, are permitted to engage in casino gambling and place bets on non-NBA league sports in jurisdictions where such activities are legally sanctioned.
For instance, participating in a blackjack game at a casino in Las Vegas would not contravene NBA regulations. Similarly, betting on horse races in locations where such betting is legal is also permissible.
Covered Persons must consistently bear in mind that they represent the NBA and must remain cognizant of their conduct and the potential impact it may have on others, their personal reputations, and the reputation of the league.”
How are these investigations tied to Malik Beasley and Jontay Porter?
U.S. Attorney Joseph Nocella, Jr. disclosed that Jontay Porter has already been charged in connection with the sports betting investigation involving Terry Rozier. Porter was issued a lifetime ban from the NBA and entered a guilty plea to conspiracy charges. His sentencing is scheduled for December.
Malik Beasley, in the meantime, is under investigation by the NBA regarding gambling allegations related to a federal probe. Beasley’s lawyer, Steve Haney, stated on Wednesday afternoon that Beasley has not been charged in the ongoing sports betting inquiry.
“I want to be unequivocally clear: Any involvement Malik Beasley may have in connection with today’s developments in the federal gambling arrests bears no relation whatsoever to any purported or alleged cooperation or information provided to the Eastern District in New York,” Haney communicated in a statement to the Detroit News. “Malik has neither cooperated with nor will he cooperate with any pending federal investigations.”
What’s next?
Defendants are scheduled to appear in court on Thursday afternoon, including Rozier in Orlando and Billups in Portland. The Trail Blazers have announced that assistant coach Tiago Splitter will be assuming head-coaching responsibilities in the interim. Their next scheduled game is Friday night against the Golden State Warriors.
How were Terry Rozier and Damon Jones alleged to manipulate or influence games?
In both instances, the accusations put forth by the FBI involve both men utilizing “long-standing relationships they had with NBA players and coaches” to obtain privileged information and convey this data to their co-conspirators, who would then use it for betting purposes. The information pertained to when certain players would be absent from upcoming games and when the players themselves would remove themselves early due to purported injuries or illnesses.
In Rozier’s case, he is accused of communicating to his co-conspirators how long he intended to play before exiting a game with an injury, enabling them to successfully wager on various prop bets for Rozier to stay under.
As for Jones, it was implied that he leveraged his connections as a former player and assistant coach in the NBA to pressure a player (or players) into divulging privileged information about playing time.
What does LeBron James have to do with this investigation?
In the FBI’s indictment concerning sports betting, Damon Jones is noted for possessing access to non-public information through his connection with “Player 3,” a notable figure in the NBA.
On February 9, 2023, when the Los Angeles Lakers faced the Milwaukee Bucks, Jones communicated via text to another co-conspirator: “Place a significant bet on Milwaukee tonight before the information becomes public! [Player 3] will be absent tonight. Wager sufficiently so that Djones can also benefit!!”
It is alleged that Jones marketed, or attempted to market, this information to other co-conspirators so they could wager against the Lakers. Player 3 was not listed on the NBA’s injury report but did not participate in the game. LeBron James was absent from the game due to a lower-body injury.
The Bucks were victorious with a score of 115-106.
