The NBA landscape was rocked this week by a scandal that has sent shockwaves throughout the world of professional sports. On October 23, 2025, federal authorities announced the arrest of 34 individuals, including Portland Trail Blazers head coach Chauncey Billups, Miami Heat guard Terry Rozier, and former NBA player and coach Damon Jones, in connection with two major investigations into illegal sports betting and rigged poker games allegedly backed by organized crime families. The breadth of the case, dubbed Operation Nothing But Bet and Operation Royal Flush, has put the integrity of the NBA and the burgeoning sports betting industry under an unforgiving spotlight.
According to the FBI, the investigations uncovered an elaborate scheme that spanned from December 2022 to March 2024. Defendants, including Rozier and Jones, are accused of using non-public information about NBA games to place fraudulent sports wagers and launder the proceeds. The probe also revealed an illegal poker ring, dating back as far as 2019, in which Billups and Jones allegedly played pivotal roles as celebrity “face cards” to lure high-rolling participants into rigged games. The poker operation, authorities say, was propped up by several Mafia families who collected debts and took a cut of the gambling profits.
The charges are serious. Both Rozier and Billups face indictments for wire fraud conspiracy and money laundering conspiracy. The FBI alleges that Rozier provided co-conspirators with inside information about his playing time and injuries, enabling them to place successful prop bets—wagers on specific player statistics—on NBA games. One notable instance highlighted in the indictment involves a March 23, 2023, game when Rozier, then with the Charlotte Hornets, played only 9 minutes and 36 seconds before leaving with a foot injury. He did not return for the remainder of the season, and his limited playing time allowed co-conspirators to cash in on prop bets that he would fall below statistical benchmarks.
Damon Jones, meanwhile, is accused of leveraging his deep NBA connections to obtain and relay non-public information about player availability and team strategies to co-conspirators. The indictment details how Jones, on February 9, 2023, allegedly informed others that a star player—identified as LeBron James—would be sitting out a Los Angeles Lakers game against the Milwaukee Bucks due to a lower-body injury. This tip, which was not reflected in the official injury report, allowed Jones and his associates to place lucrative bets against the Lakers. The Bucks went on to win that night, 115-106.
Billups’ alleged involvement is two-fold. While he is named in the illegal poker ring indictment, the federal government also describes him as a co-conspirator in the sports betting probe. Prosecutors claim that Billups provided inside information to co-defendants, including Eric Earnest, about the Trail Blazers’ plans to “tank” the final ten games of the 2022-23 season by resting key players. This knowledge was then used to place fraudulent wagers and manipulate betting outcomes.
The NBA wasted little time responding to the unfolding scandal. In a statement released Thursday afternoon, the league said, “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 these allegations with the utmost seriousness, and the integrity of our game remains our top priority.” The Trail Blazers quickly announced that assistant coach Tiago Splitter would assume head-coaching duties, with the team preparing to face the Golden State Warriors on Friday night.
Both Rozier and Billups have denied the charges through their attorneys. Rozier’s lawyer, Jim Trusty, insisted, “My client is not a gambler and looks forward to winning this fight.” Billups’ attorney, Chris Heywood, described his client as “a man of integrity” and rejected the allegations outright. The two appeared in court on October 23, 2025—Rozier in Orlando and Billups in Portland—and were released on bond pending further proceedings.
The scandal has also cast a harsh light on the NBA’s relationship with the legal sports betting industry, which has exploded in the United States since the Supreme Court’s 2018 decision to strike down the Professional Amateur Sports Protection Act. Legal sports betting is now permitted in 38 states and Washington, DC, with Missouri set to join the ranks in December. The industry generated a staggering $10 billion in revenue through the third quarter of 2025 alone, a 19% jump from the previous year, according to the American Gaming Association.
Professional leagues, including the NBA, have embraced partnerships with sportsbooks and data providers. The NBA, for example, maintains a lucrative deal with Sportradar, which supplies official statistics to platforms like FanDuel Sportsbook. These partnerships have created new revenue streams for leagues but have also raised concerns about potential conflicts of interest and the risk of manipulation. As Isaac Rose-Berman, a researcher at the American Institute for Boys and Men, observed, “When you’re able to bet what the next pitch in a baseball game is going to be, that’s because Major League Baseball is selling data to platforms for a pretty high price.”
Regulation of sports betting remains a patchwork, with each state setting its own rules and tax rates. Some jurisdictions restrict betting to specific locations, while others allow mobile wagering from anywhere within state lines. All major leagues strictly prohibit players and employees from betting on their own games, though some forms of gambling on other sports are permitted. The NBA’s manual, as cited by ESPN’s Bobby Marks, allows for legal casino gambling and betting on non-NBA sports but emphasizes that those involved must be mindful of their conduct and its impact on the league’s reputation.
Prop bets—wagers on whether a player will exceed or fall short of certain statistical thresholds—have become a flashpoint in the current probe. The NBA and other leagues have expressed growing concern about the potential for manipulation, as evidenced by Rozier’s March 2023 game. Ohio Governor Mike DeWine recently urged his state’s gambling commission to ban prop bets after Major League Baseball placed two Cleveland Guardians pitchers on leave during a separate betting investigation.
The broader social implications of the scandal are hard to ignore. Experts warn that the normalization and aggressive advertising of sports betting have contributed to a rise in gambling addiction, particularly among young men in low-income communities. Wayne Taylor, a marketing professor at Southern Methodist University, noted, “States sort of opened up a can of worms, and now some of them are starting to realize just how crazy this sports betting world sort is.”
As the legal process unfolds, other NBA figures remain under scrutiny. Jontay Porter, previously charged in the same sports betting probe, has already received a lifetime NBA ban and is awaiting sentencing after pleading guilty to conspiracy. Malik Beasley, another player under investigation, has not been charged and, according to his lawyer, has not cooperated with federal authorities.
With court dates set and the NBA’s reputation hanging in the balance, the league and its fans are left to grapple with the fallout. The next moves by prosecutors, league officials, and the accused will determine how deeply this scandal will reshape the future of professional basketball and the sports betting industry at large.
