What began as whispers in Las Vegas sportsbooks exploded Thursday, Oct. 23 into one of the biggest scandals in modern sports history. Portland Trail Blazers coach Chauncey Billups, Miami Heat guard Terry Rozier and former Cleveland Cavalier guard and assistant coach Damon Jones were arrested as part of a federal investigation into illegal sports betting and rigged, Mafia-backed poker games connected to the NBA. 

Federal officials said the two investigations stretch across 11 states and tens of millions of dollars in dirty money.  

“The fraud is mind-boggling,” FBI Director Kash Patel said. “This is insider trading for the NBA… that’s what this is.” 

The NBA announced Thursday that both Billups and Rozier have been placed on immediate leave, with assistant coach Tiago Splitter filling in for Billups as the Blazers’ interim head coach. 

“We take these allegations with the utmost seriousness,” the league said in an October 23 statement. “The integrity of our game remains our top priority.” 

Rozier, arrested early Thursday at a hotel in Orlando, is accused of leaking insider information to gamblers who wagered on NBA games between March 2023 and March 2024. Prosecutors say players were given instructions to sit out or underperform to help bettors cash in. 

According to the indictment, Rozier told a childhood friend, Deniro Laster, that he would leave the March 23, 2023 Hornets game early with a fake injury. Laster allegedly sold the information for $100,000, and gamblers used it to place winning bets worth hundreds of thousands. Rozier exited the game after nine minutes, scoring just five points. 

“This is one of the most brazen sports corruption schemes since online betting became widely legal in the U.S.,” U.S. Attorney Joseph Nocella Jr. of the Eastern District of New York said. “It shows how the line between competition and corruption can blur when money gets involved.” 

Rozier faces charges of wire fraud conspiracy and money laundering conspiracy, each carrying up to 20 years in prison. He appeared in court wearing handcuffs and a Hornets sweatshirt before being released on bond.  

“He’s not a gambler… he’s a competitor,” Rozier’s attorney, Jim Trusty, said outside the courthouse. “We look forward to clearing his name.” 

The National Basketball Players Association also issued an October 23 statement, saying it would ensure Rozier “receives due process.” 

“The integrity of the game is paramount to NBA players,” the union said. “But so is the presumption of innocence.” 

Former Cavaliers guard Damon Jones faces separate charges for sharing insider injury information, including Lakers star LeBron James’ absence from a Feb. 9, 2023 game against the Milwaukee Bucks. Prosecutors said Jones texted a bettor to “get a big bet on Milwaukee tonight” before the Lakers publicly listed James as out. James, widely unaware of Jones’ actions, has not been accused of wrongdoing. 

Billups’ arrest stems from a parallel FBI probe into rigged high-stakes poker games allegedly organized by Mafia-linked associates. Investigators say Billups and Jones used their celebrity status to attract wealthy players to games fixed with cheating technology. This included card reading machines, hidden cameras and even X-ray tables. Authorities estimate victims were defrauded of more than $7 million. 

“Victims believed they were sitting at a fair table,” New York Police Commissioner Jessica Tisch said. “Instead, they were surrounded by deception.” 

Court filings describe Billups as a “face card” — a recognizable player meant to draw others into the games. He allegedly pocketed $50,000 from one 2019 event in Las Vegas. His attorney, Chris Heywood, dismissed the accusations as “fantastical.” 

“To think Chauncey Billups would risk his Hall of Fame legacy for a card game is absurd,” Heywood said. 

Billups appeared in federal court in Portland and was released under conditions restricting his travel and prohibiting any gambling activity. His next hearing is scheduled for Nov. 24 in Brooklyn. 

The poker ring was reportedly backed by members of the Bonanno, Gambino, Lucchese and Genovese crime families.  

“Once players lost, the Mafia made sure they paid… through threats and intimidation,” Nocella said. 

These scandals have reignited debate about the rapid growth of legal sports betting and its oversight. Integrity monitoring firms, which are companies that track suspicious bets, often have business ties to sportsbooks themselves, a setup one analyst compared to “a fox guarding the henhouse.” 

The March 2023 game tied to Rozier raised early red flags after $260,000 flooded in on his proposition unders, but the NBA took no disciplinary action. Now, a Senate committee has asked NBA Commissioner Adam Silver why it took an FBI probe to expose the scheme. 

“This has to be a wake-up call,” sports law expert Dana Peterson said. “If the leagues can’t police their own, the government will.”

Thursday’s arrests come just months after former Raptors center Jontay Porter was banned from the NBA for manipulating bets on his own games. Several individuals named in the Porter case appear again in the new indictments. 

Reports also mention former NFL tight end Antonio Gates hosting one of the poker games in Miami and Clippers coach Tyronn Lue attending one in Las Vegas in 2019. Neither has been charged nor accused of wrongdoing. 

“These cases highlight the dark side of the sports betting boom,” Nocella said. “We will continue to pursue anyone, athlete, coach or criminal, who uses their access to compromise the integrity of professional sports.” 

Federal officials said the investigations remain active, with additional arrests expected in the coming weeks.