FBI Busts Massive NBA Betting, Poker Scandal Tied to New York Mafia Families

The FBI has blown the lid off what it calls a “massive cheating conspiracy” that stretches from NBA locker rooms to New York’s underworld, and the fallout is shaking American basketball to its core.

Federal prosecutors in Brooklyn announced two sweeping indictments on Thursday, charging current and former NBA players, a head coach, and members of organized crime families in an illegal betting and poker-cheating network worth millions.

Among those arrested: Portland Trail Blazers coach Chauncey Billups, Miami Heat guard Terry Rozier, and former Cleveland Cavaliers player Damon Jones.

“The investigative work that culminated with this morning’s operation are reminiscent of a Hollywood movie. But this was not luck, and it was not theatrics,” said Ricky Patel, special agent in charge of Homeland Security investigations.

The timing couldn’t be worse for the league, opening week of the NBA season and the debut of its $76bn broadcast deal.

The First Indictment: Insider Betting on NBA Games

Federal prosecutors allege that Rozier and others used non-public injury and lineup information to place illegal bets on NBA games between December 2022 and March 2024 — wagers that were “almost guaranteed to win.”

“They also misused information obtained through longstanding friendships that they had with NBA players and coaches,” said Joseph Nocella, acting US attorney for the Eastern District of New York.

The indictment details seven games in 2023 and 2024 where hundreds of thousands of dollars were allegedly wagered. Rozier’s lawyer has denied the allegations, saying his client will fight the charges.

The scheme allegedly relied on a network of “straw bettors” to conceal who was behind the wagers, and profits were laundered through cash handoffs, wire transfers, and peer-to-peer apps.

The Second Indictment: Mafia-Linked Poker Ring

The second case exposes a high-tech poker scam backed by New York’s Bonanno, Gambino, Lucchese, and Genovese crime families — all part of the storied La Cosa Nostra network.

Prosecutors say wealthy victims were lured into private games supposedly featuring ex-athletes, including Billups, only to discover that the tables were rigged.

Using fake shuffling machines, X-ray poker tables, and covert communication systems, the organisers allegedly saw every card in play. The data was transmitted to an off-site “operator,” who relayed it back to a player at the table known as the “quarterback.”

The result: at least $7 million in losses for victims.

Thirteen mafia members and associates were also indicted, accused of extortion, robbery, and crypto-based money laundering to enforce and hide the operation’s profits.

The Accused NBA Figures

• Chauncey Billups, Portland Trail Blazers head coach — accused of being a “face card” used to attract players to the rigged poker games.
• Terry Rozier, Miami Heat guard — charged with feeding insider injury info to gamblers.
• Damon Jones, former Cavaliers player — allegedly supplied confidential player data and helped recruit targets for poker nights.

League Fallout

The NBA said in a statement Thursday it is “reviewing the indictments and cooperating fully with authorities.” Both Rozier and Billups have been placed on immediate leave from their teams.

Even seasoned legal experts admit they didn’t see this coming.

“The idea that poker would be part of today’s news was unexpected,” said Mike McCann, a Harvard law professor. “And the alleged role of the mafia — that kind of came out of nowhere.”