UPDATED: FBI, DOJ Detail Illegal Sports Betting and Poker Schemes Involving Terry Rozier, Chauncey Billups, and Damon Jones
By Robert Linnehan in Sports Betting News
Published:
- Members of the FBI and Department of Justice provided new details on an illegal sports betting and poker scheme that involved current and former NBA players and coaches
- Current Miami Heat guard Terry Rozier has been arrested for his role in a sports betting scheme that stemmed from the same case involving Jontay Porter
- Current Portland Trail Blazers Coach Chauncey Billups and former player and coach Damon Jones both arrested for their roles in a poker scheme involving the mafia
FBI Director Kash Patel and Eastern District of New York U.S. Attorney Joseph Nocella, Jr. this morning provided details on two overarching sports betting and poker indictments that involve several current and former NBA players and coaches.
This morning, news broke that Miami Heat guard Terry Rozier had been arrested through a federal investigation by the U.S. Attorney’s Office for the Eastern District of New York for potentially manipulating a 2023 game performance as part of an illegal sports betting ring. Shortly after, news also broke that current NBA coach and hall of fame member Chauncey Billups and former NBA player and coach Damon Jones had also been arrested for their roles in an illegal poker scheme involving New York families of the mafia.
Jones was involved in both the poker and sports betting indictments.
Tens of Millions of Dollars Involved in Both Cases
According to Patel, the multi-year investigations led to 34 arrests across 11 states and involved “tens of millions of dollars” won through illegal means.
“The fraud is mind-boggling,” he said.
Rozier will appear in federal court in Miami this afternoon while Billups will appear in federal court in Portland. Both will be arraigned in New York Federal Court sometime in the future.
The sports betting case, dubbed “Operation Nothing But Net” by the FBI, involved similar individuals who also orchestrated the sports betting scheme involving former Raptors center Jontay Porter. Porter pled guilty to conspiracy to commit wire fraud for his role in manipulating his performance outcomes and is awaiting sentencing. He has also been permanently banned from the NBA.
Six individuals have been arrested, including Rozier, for their roles in manipulating the outcome of game performances. A federal investigation for Rozier was announced in January, centering around a March 23, 2023 game when Rozier was a member of the Charlotte Hornets. Rozier played less than 10 minutes in the game after leaving with what was described as a foot injury. Rozier averaged more than 35 minutes a game that season.
Nocella said the sports betting scheme was an “insider sports betting conspiracy” that exposed confidential information for NBA athletes and teams. The individuals involved in the conspiracy knew when specific players would be sitting out futures games or who planned to pull themselves out of competition early, for purported injuries of illnesses.
The defendants placed bets on games involving the Los Angeles Lakers, Toronto Raptors, Charlotte Hornets, and Portland Trail Blazers, he said. They did so through online sports betting platforms and in-person at casino sportsbooks.
According to The Athletic, Jones shared non-public information regarding Lebron James during his 2022-2023 season with the Los Angeles Lakers. Jones had restricted access to work with James during the season and allegedly shared information with gamblers that James would miss a Feb. 9, 2023 matchup against the Milwaukee Bucks due to ankle soreness.
Nocella said the legalized sports betting operators had no knowledge of the conspiracy and are “victims” in this sports betting case.
Patel said the legal gaming industry is safe and those participating in the markets have “nothing to worry about.”
“If you’re participating in the legal gambling industry you have nothing to worry about. If you’re participating in illegal conduct you have everything to worry about, and this case shows it,” Patel said.
Jones, Billups Used in Poker Scheme
The poker scheme, dubbed “Operation Royal Flush” by the FBI, involved several New York Italian mafia families organizing rigged poker games to scam millions of dollars from its players. Thirteen members from New York mafia families have been indicted in the case.
According to Nocella, the poker games were rigged with various technological means to ensure who would win, resulting in hundreds of millions of dollars being scammed from players at the games.
Players were promised the opportunity to play with Billups and Jones, former NBA players and coaches, to lure them into the games.
“Your winning streak has ended. Your luck has run out,” Nocella said.
American Gaming Association Applauds Regulated Markets
After news of the scandals broke, Bill Miller, president and CEO of the American Gaming Association, published a statement on the indictments and applauded the work of the legal gaming industry and its commitment to integrity.
“Today’s revelations are a stark reminder of the pervasive and predatory illegal market, ensnaring countless individuals and operating in the shadows. It is important to recognize that the regulated legal market delivers transparency, oversight, and collaboration with authorities that assists in bringing these bad actors to light. Today, we applaud the work of the FBI, the NYPD, the Department of Homeland Security, and the Eastern District of New York, and reiterate the legal gaming industry’s commitment to integrity and collaboration with regulators, leagues, and law enforcement. We will continue to work closely with all partners to eliminate illegal gambling and uphold the public’s trust in the games we love.”
NBA Releases Statement, Takes Action
Following the morning’s press conference, the NBA officially announced both Rozier and Billups have been placed on immediate leave from their teams.
“We are in the process of reviewing the federal indictments announced today. Terry Rozier and Chauncey Billups are being placed on immediate leave from their teams, and we will continue to cooperate with the relevant authorities. We take the allegations with the utmost seriousness, and the integrity of our game remains our top priority.”
FanDuel Addresses Indictments
A FanDuel spokesperson offered the following statement regarding the sports betting scandal.
“Today’s events are deeply disturbing, and should concern fans, athletes, and everyone who loves sports and values integrity and fair play. They also illustrate the stark contrast between legal and illegal betting markets. At FanDuel, we use advanced technology and real-time monitoring to identify suspicious activity and work closely with leagues, data monitoring groups, and law enforcement. We are unwavering in our commitment to rooting out abuses by those who seek to undermine fair competition and the games we love.”
This is a developing story and will be updated as new information comes in.
Regulatory Writer and Editor
Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.
