Massive Gambling Scandal Allegedly Involved NBA Players and Mafia
By Griffin Cappiello and Luis Zonenberg
Just two days into the National Basketball Association (NBA) season, Miami Heat guard Terry Rozier, current Portland Trailblazers head coach Chauncey Billups, and former player Damon Jones were all arrested for connections to a sports betting scandal. The players were accused of taking part in rigged poker games, as news began circulating of an alleged connection between Billups, Jones, and the mafia.
ESPN reported that the two former players were recruited by 67-year-old Robert L. Stroud to take part in rigged poker games run by some of New York City’s most prominent crime families. Billups and Jones, along with 31 other co-defendants, were indicted by federal prosecutors for allegedly participating in a plot to steal from players by rigging these illegal poker games that involved members of the Bonano, Gambino, Luchese, and Genovese crime families.
“As alleged, members and associates of organized crime families fixed illegal poker games as part of a highly sophisticated and lucrative fraud scheme to cheat victims out of millions of dollars and conspired with others to perpetrate their frauds,” stated United States Attorney for the Eastern District of New York Joseph Nocella, Jr.
“Well-known former NBA players and former professional athletes, acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games, where they were then at the mercy of concealed technology, including rigged shuffling machines and specially designed contacts lenses and sunglasses to read the backs of playing cards, which ensured that the victims would lose big. Today’s indictment and arrests sounds the final buzzer for these cheaters.”
Rozier was not charged in the previous indictment, but, along with Jones and six6 other co-defendants, was named in a separate indictment. Rozer was charged with allegedly informing bettors that he planned to take himself out of a game early so they could place and win wagers.
“As alleged, the defendants turned professional basketball into a criminal betting operation, using private locker room and medical information to enrich themselves and cheat legitimate sportsbooks,” stated United States Attorney Nocella. “This was a sophisticated conspiracy involving athletes, coaches, and intermediaries who exploited confidential information for profit. Insider betting schemes erode the integrity of American sports, and this Office will continue in its strong tradition of holding accountable anyone who seeks to corrupt sports through illegal means.”
In the second indictment, Jones, a former teammate and shooting coach of NBA legend LeBron James, is accused of using his role as an assistant coach of the Cleveland Cavaliers to provide bettors with insider information regarding James and the team. The New York Times reported that a league insider with knowledge of the situation shared that James was unaware that Jones shared any information about his playing status.
“We are in the process of reviewing the federal indictments announced today,” the NBA said in a statement. “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 these allegations with the utmost seriousness, and the integrity of our game remains our top priority.”
“The integrity of the game is paramount to NBA players, but so is the presumption of innocence, and both are hindered when player popularity is misused to gain attention,” the NBA Players Association said in a statement. “We will ensure our members are protected and afforded their due process rights through this process.”
The Athletic reported that members of Congress sent a letter to NBA commissioner Adam Silver to request a briefing on the scandal. Members of the House Committee on Energy and Commerce were interested in hearing Silver’s response to questions regarding the NBA Code of Conduct’s effectiveness, future actions of the NBA to limit disclosure of non-public information, and if the NBA will reevaluate its partnerships with sports betting companies.
The NBA currently partners with major sports betting brands, such as DraftKings, FanDuel, and BetMGM, with several teams even allowing sportsbooks inside their arenas.
In May 2018, the Supreme Court essentially legalized sports gambling by leaving the decision up to the states. Thirty-eight states, along with Washington, D.C. and Puerto Rico, allow and regulate sports betting.
Following the scandal, other major sports leagues, including the National Football League (NFL), issued memos and statements to remind players and team personnel of their stances on sports betting. USA Today reported that Major League Soccer (MLS) suspended two players for “a potential violation of league rules,” but that the league declined to share specific details regarding the suspension, leading some fans to believe they were related to the NBA scandal. The National Collegiate Athletic Association (NCAA) recently voted to allow college student-athletes to bet on professional sports, but decided to postpone the implementation of this rule change.
As sports betting becomes more and more popular, major sports leagues are looking towards Washington for assistance in regulating this constantly growing industry. At the present moment, it seems unlikely that Congress will be restricting sports gambling anytime soon, but if widespread scandals become more common, lawmakers may be forced into action.
