On Thursday, Portland Trail Blazers head coach Chauncey Billups, Miami Heat player Terry Rozier, and ex-NBA player and coach Damon Jones were charged in two separate extensive federal probes concerning unlawful sports wagering and manipulated poker games.
Here’s what our ESPN journalists know regarding the allegations, the upcoming steps for those implicated, and the potential implications for the NBA.
What are the two cases?
Doug Greenberg: While both cases involve current and former NBA athletes, the FBI emphasized in its press briefing that they are distinct cases, although with some interconnected details.
The initial case pertains to wagering on NBA games, utilizing insider knowledge from players and coaches, while the second case involves manipulating high-stakes, Mafia-linked poker games against wealthy players after luring them with former NBA athletes, including Jones and Billups.
What is the FBI claiming occurred in the sports betting case?
Brian Windhorst: That NBA players have allegedly opted out of games, purportedly to save on «under» prop bets, and that individuals with inside information have disclosed details about player status prior to public announcements.
The case filings indicate that from December 2022 to March 2024, a group of conspirators placed wagers on a minimum of seven NBA games using confidential information. Those games included the Charlotte Hornets, Orlando Magic, Trail Blazers, Los Angeles Lakers, and Toronto Raptors.
Rozier is charged with leaking insider information, withdrawing himself early from at least one game to aid gamblers, and profiting from those wagers, as stated in the indictment.
Jones, who was unofficially part of Darvin Ham’s Lakers coaching staff during the 2022-2023 season, allegedly sold inside details regarding player availability to bettors.
While Billups is not directly mentioned in the indictment concerning sports betting, it outlines a co-conspirator whose playing and coaching history aligns with his own. That co-conspirator is said to have informed a bettor that the Trail Blazers were intentionally losing games and that multiple players would be absent from a March 2023 game.
Billups’ attorney, Chris Heywood, stated to ESPN that his client intends to contest the accusations. «To assume that Chauncey Billups engaged in the actions the federal government claims is to believe he would jeopardize his hall-of-fame legacy, his reputation, and his freedom. He would never risk those aspects for any reason, especially a card game,» Heywood mentioned. «Billups has never and would never gamble on NBA games, supply insider information, or betray the trust of his team and the League.»
Didn’t we already have knowledge of this?
Windhorst: Yes, Jontay Porter, who previously played for the Toronto Raptors, pleaded guilty for his role last year. The NBA looked into Rozier in 2023 following questionable wagering on his prop bets in a match between the Hornets and New Orleans Pelicans — one of the matches featured in the indictment — and asserted it «did not find a breach of NBA regulations.»
When questioned about that inquiry on Thursday, league representatives noted that the NBA lacks the investigative authority of law enforcement but refrained from commenting on the specifics of the investigation.
What is Rozier’s purported involvement?
Greenberg: On March 23, 2023, Rozier, then playing for the Charlotte Hornets, allegedly informed Deniro Laster, a childhood acquaintance, that he intended to pull out of Charlotte’s game versus the New Orleans Pelicans in the first quarter due to a supposed injury, as per the indictment. Laster reportedly profited from this info by selling it to two bettors for approximately $100,000.
These bettors, in addition to their associates and a web of proxy bettors, placed wagers on Rozier’s prop unders, according to the indictment. ESPN previously covered gambling activities relating to Rozier’s props in the March 23 game.
Rozier exited the game after just nine minutes, scoring 5 points, 4 rebounds, and 2 assists. According to the indictment, he funded Laster’s trip to Philadelphia to retrieve the earnings from the operation, after which Laster drove to Rozier’s residence in Charlotte to count the money with him.
Rozier’s lawyer, Jim Trusty of Ifrah Law, asserted in a statement that his client is «not a gambler» and «looks forward to prevailing in this battle.»
How does the NBA justify allowing Rozier to play over the past two years?
Windhorst: This issue could trigger significant repercussions stemming from these explosive claims. The NBA’s procedures related to this investigation will likely come under intense scrutiny. It may also impact an ongoing NBA investigation into Malik Beasley, as the league will now need to adopt a more thorough approach moving forward. Beasley has not been mentioned in these indictments but is currently under federal scrutiny and will face increased examination as a result of these developments.
What is the connection to Billups and Jones?
Windhorst: Jones and a co-conspirator whose description fits Billups are accused of informing bettors regarding the status of star players prior to that information being made public in 2023 and 2024. The players themselves are not identified in the indictment, but they correspond to descriptions of Damian Lillard, LeBron James, and Anthony Davis. None of these athletes have been accused of wrongdoing.
An intriguing twist is that in the second game, for which Jones is alleged to have passed insider information to bettors — on January 15, 2024, against the Oklahoma City Thunder — James and Davis were still active, despite being listed on the injury report. The bet placed on the Thunder lost, leading co-conspirators to request a refund from Jones per the indictment. Jones contended, according to the indictment, that the intel was reliable.
A notable distinction between the accusations against Jones and Billups is that Jones is charged with selling insider information.
Why was this considered insider information?
Windhorst: The period between when a player’s eligibility is determined and when it is publicly announced has historically been sought after by gamblers looking for insider knowledge. Knowing the team’s decisions for their players before they become public is information that Billups and Jones, as coaches, would have access to.
For many years, NBA teams have occasionally concealed players’ availability on game days, particularly for star athletes, for strategic objectives.
Occasionally, players are genuinely game-time decisions. Sometimes, however, they are labeled as such even when decisions were made hours earlier. This seems to be the origin of the current case, and the NBA must further investigate this aspect.
What actions has the NBA taken regarding the increase in gambling-related scandals?
Windhorst: Following the extensive legalization of gambling, the NBA has implemented measures aimed at enhancing transparency. This includes more comprehensive injury reports that are updated throughout the day, along with penalties for teams that fail to adhere to protocols.
However, as evidenced by this indictment, the league may have to reevaluate and reinforce its existing guidelines.
Who is Damon Jones?
Tim Bontemps: Jones was a transient NBA player but is best recognized for his time spent alongside LeBron James for three seasons with the Cleveland Cavaliers from 2005 to 2008, including as a member of the Cavaliers’ 2007 NBA Finals team.
After his playing career concluded, Jones coached both with the Cavaliers’ G League affiliate and the Cavs during James’ second tenure with the franchise from 2014 to 2018, and he was an unofficial member of the Lakers coaching staff under Darvin Ham during the 2022-2023 session.
What about LeBron James?
Greenberg: On February 9, 2023, Jones communicated with co-conspirators to bet against the Lakers in their match versus the Milwaukee Bucks because «Player 3,» as he was referred to in the filing, would be absent that evening due to an injury. Although «Player 3» is not specifically named in the indictment, the details align with those of LeBron James. James has not faced any charges, and a source close to him informed ESPN’s Dave McMenamin that he was unaware of Jones’s gambling activities.
What supposedly transpired in the Cavs-Magic game?
Windhorst: An unnamed Magic player notified a friend, described in the indictment as «at times, an NBA player,» about insider information regarding a game against the Cleveland Cavaliers in April 2023, according to the indictment.
The Cavaliers had priorly announced their intention to rest their starters for that game, resulting in the Magic becoming significant favorites. The friend subsequently relayed this information to a co-conspirator, who placed a bet on the Cavs to cover the spread.
When the Magic benched their starters later on, as is commonplace late in the season, the Cavaliers achieved a rout.
The Magic player is not mentioned in the indictment nor accused of any misconduct.
What is the poker-related case: United States vs. Aiello, et al.?
Greenberg: Since as early as 2019, a group of co-conspirators organized unlawful, high-stakes poker games across the nation aimed at defrauding affluent players out of a total of $7.15 million, according to the indictment. These games were backed by four of the five crime families that constitute the Italian-American Mafia, recognized as La Cosa Nostra: Gambino, Lucchese, Genovese, and Bonanno.
Billups and Jones — identified as «face cards» in the scheme — reportedly leveraged their celebrity status to entice victims into participating in these rigged, high-stakes poker games, as per the indictment. «Cheating teams» developed a complicated setup using technology that would notify the co-conspirator players of the cards on the table, granting them an advantage over the victims. Allegations include the use of X-ray tables, marked card glasses, and technology that allowed an outside team member to communicate the current cards, as outlined in the indictment.
Everyone involved in the games, including Billups and Jones, the dealers, as well as the victims, was part of the scheme and gained a portion of the victims’ losses, according to the indictment. The Poker game victims were not named in the filings.
Once victims incurred losses, the Mafia resorted to extortion and violence to ensure debts were settled, as indicated by the indictment.
How are the two cases connected?
Greenberg: Although these are individual cases, three individuals face charges in both scenarios.
Jones purportedly sold insider information to co-conspirators in the NBA betting case and was involved as a «face card» in the poker operation.
Eric Earnest and Shane Hennen allegedly placed bets on NBA games utilizing undisclosed information and participated in the poker cheating teams, based on the case records. Hennen is also asserted to have provided some of the technology employed for cheating in the games, per the indictment.
What charges do Billups and Rozier face?
David Purdum: Billups and Rozier have been charged with conspiracy related to wire fraud and money laundering, based on court documents. Each charge carries a potential sentence of up to 20 years in prison, as per Assistant U.S. Attorney Diane Hu.
Both appeared in court on Thursday and were released from custody under specific stipulations. A judge in Florida stated that Rozier would be released after posting his home’s value as bond and handing in his passport. Billups also surrendered his passport and is required to secure a large bond.
How does this relate to the Jontay Porter case?
Greenberg: Porter previously admitted guilt to wire fraud in association with this case and is awaiting sentencing. At Thursday’s press conference, U.S. Attorney Joseph Nocella Jr. mentioned that co-conspirators pressured Porter into cooperating to alleviate prior gambling debts.
Is there a connection to the Gilbert Arenas case?
Greenberg: In July, former NBA star Gilbert Arenas was arrested for illegal poker games held at his residence in Encino, California. While there are some similarities to this case, Arenas’ scheme involved the Israeli mafia and does not seem to directly correlate with the recent situation.
Is there a link to the Malik Beasley case?
Greenberg: It’s uncertain. In June, ESPN reported that Malik Beasley was under federal investigation due to allegations of gambling related to NBA games and prop wagers. Two months later, Beasley’s attorney indicated he was no longer a target of the investigation. The NBA has since initiated its own inquiry into Beasley.
What about the ongoing college basketball investigations?
Purdum: ESPN previously indicated that some of the betting accounts linked to Rozier and Porter props also wagered on college basketball games flagged for suspicious betting. Sources informed ESPN that the FBI has been interviewing college athletes and believes indictments are imminent.
What effects will this have on the Trail Blazers moving forward?
Tim Bontemps: From a performance perspective, the primary impact is Billups’ absence from the bench for one of the NBA’s more promising young teams this season.
Portland, which has struggled in the Western Conference recently but aimed for a playoff push this season, acquired Jrue Holiday in the offseason and signed extensions for Shaedon Sharpe and Toumani Camara last week. Billups and general manager Joe Cronin received extensions earlier this year as well.
The NBA placed Billups on leave, and the Trail Blazers appointed assistant coach Tiago Splitter, a two-time champion as a player with the Spurs and former head coach of Paris Basketball in the Euroleague, as interim coach. The Blazers will take on the Golden State Warriors at home on Friday.
How will Rozier’s contract affect the Heat?
Bobby Marks: Rozier signed a four-year, $96.3 million deal with Charlotte on August 24, 2021, and was subsequently traded to Miami on January 23, 2024. He has one year and $26.6 million remaining, of which $24.9 million is guaranteed. He faces 24 payments of $1,110,126, set to begin on November 15 and concluding on November 1, 2026. With this season included, Rozier’s career earnings total $161.7 million.
The Uniform Player Contract (UPC) Rozier signed contains provisions that grant commissioner Adam Silver the exclusive authority to suspend Rozier indefinitely or expel him if he has wagered or offered to wager money or anything of value on any NBA game. The NBA Operations Manual also contains clauses preventing any player, coach, or team executive from «tipping» information that could be leveraged in betting on NBA games. «Tipping» involves disclosing «confidential information» to any individual lacking a legitimate business need for said information.
If the league determines Rozier violated this regulation, he could be expelled from the NBA, leading to the removal of his $26.6 million salary from the salary cap. The Heat currently sit $1.6 million below the luxury tax and $7.2 million under the first apron hard cap, with an available roster spot.
While Rozier has not been convicted, the NBA suspended Porter nearly three months prior to his guilty plea for wire fraud conspiracy related to the same gambling situation.
In the meantime, the NBA has placed Rozier on immediate leave.
What’s the NBA’s stance on sports betting?
Greenberg: «We are currently reviewing the federal indictments announced today,» the NBA declared in a statement on Thursday. «We take these allegations with the utmost seriousness, and maintaining the integrity of our game remains our highest priority.»
The NBA was the pioneering major American sports league to advocate for legalized sports betting. In 2014, four years before legalized online sports betting commenced in the U.S., Silver authored an op-ed for the New York Times titled «Legalize and Regulate Sports Betting.»
«Allow me to clarify: Any new approach must uphold the integrity of the game,» Silver wrote back then. «Protecting the integrity of professional basketball and maintaining public trust in the league and its sport is one of my most significant responsibilities as commissioner of the NBA. I oppose any measures that would jeopardize these goals.»
In response to the Porter case, the NBA requested its partner sportsbooks to cease allowing bettors to wager on the under on prop bets tied to players on two-way contracts, similar to Porter during his time.
On Tuesday, while appearing on «The Pat McAfee Show,» Silver again called for heightened federal oversight of sports betting and urged sportsbooks to «reduce some of the prop bets» to avert potential manipulation.
Why do federal authorities view sportsbooks as «victims» in this scenario?
Greenberg: The federal investigation regards sportsbooks as victims in the NBA situation due to the nature of the bets placed by the conspirators, which are deemed fraudulent because of the confidential nature of their insider knowledge, according to the indictment.
«The sportsbooks are, in fact, victims in this scenario,» Nocella stated at Thursday’s press briefing about the indictments. «Based on our investigation, they did not engage in any unlawful activities.»
DraftKings and FanDuel, both official gaming partners of the NBA, along with the American Gaming Association, issued statements to ESPN in reaction to the indictments, generally praising regulated online sports betting for its capacity to detect potentially illegitimate betting practices while denouncing the illegal market that lacks such safeguards.
Neither sportsbook publicly committed to altering their player prop offerings, but a DraftKings spokesperson mentioned that the company «is dedicated to collaborating closely with the league to ensure the ongoing integrity of the game.»
