Table of Contents
Federal authorities announced the arrest of more than 30 individuals Thursday in connection with two major gambling investigations that have swept up several NBA figures, including Portland Trail Blazers head coach Chauncey Billups, Miami Heat guard Terry Rozier, and former NBA player Damon Jones.
The arrests, made across 11 states, involve charges of wire fraud, money laundering, extortion, and illegal gambling, with FBI Director Kash Patel describing the schemes as a "criminal enterprise that envelops both the NBA and La Cosa Nostra."
"The fraud is mind-boggling," Patel told reporters at a news conference Thursday, noting the schemes involved "tens of millions of dollars" in ill-gotten gains.
Two Separate Operations
The investigations, conducted by the FBI and the U.S. Attorney’s Office for the Eastern District of New York, center on two distinct but overlapping cases dubbed "Operation Royal Flush" and a sports betting manipulation scheme.
Billups, 49, faces charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in connection with an alleged rigged poker operation. According to prosecutors, Billups served as a "face card" in the scheme, using his celebrity status to attract unsuspecting gamblers to underground poker games in Manhattan, Las Vegas, Miami, and the Hamptons.
The poker scheme allegedly involved high-tech cheating equipment, including manipulated shuffling machines, special contact lenses and glasses that could read pre-marked cards, and X-ray tables capable of reading face-down cards. Federal prosecutors say the operation was backed by members of four organized crime families: the Bonanno, Gambino, Genovese, and Lucchese crime families.
Since April 2019, victims have lost at least $7 million in the rigged poker games, according to the indictment. One victim alone lost $1.8 million.
“Victims believed that they were sitting at a fair table. Instead, they were cheated out of millions.”
Sports Betting Scheme
In a separate indictment, Rozier faces charges related to an alleged sports betting manipulation scheme involving insider information about his playing status.
Prosecutors allege that between December 2022 and March 2024, while playing for the Charlotte Hornets, Rozier provided advance information about his availability for games to co-conspirators who placed illegal bets on proposition wagers related to his performance.
The indictment highlights seven games during this period, including a March 2023 contest against the New Orleans Pelicans that had been flagged for unusual betting activity. In that game, Rozier exited after just nine minutes with what the team described as "foot discomfort," having posted statistics well below his season averages and betting lines.
According to U.S. Attorney Joseph Nocella Jr., bettors made $200,000 in wagers on the under for Rozier’s performance in that game, generating tens of thousands of dollars in profit when those bets paid out.
Jones, who retired from playing in 2012 and later worked as an assistant coach, is one of three defendants charged in both cases.
NBA Response and Legal Defense
Both Billups and Rozier have been placed on immediate leave from their teams, the NBA announced Thursday.
"We are in the process of reviewing the federal indictments announced today," the league 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."
Trail Blazers assistant Tiago Splitter will serve as interim head coach. Portland is cooperating fully with the investigation, the team said in a statement.
Both defendants appeared in federal court Thursday and were released under conditions including travel restrictions, gambling prohibitions, and passport surrender.
Attorneys for both men issued strong denials of the allegations.
“Anyone who knows Chauncey Billups knows he is a man of integrity; men of integrity do not cheat and defraud others. To believe that Chauncey Billups did what the federal government is accusing him of is to believe that he would risk his hall-of-fame legacy, his reputation, and his freedom.”
Chris Heywood, Billups’ attorney, added that Billups "has never and would never gamble on basketball games, provide insider information, or sacrifice the trust of his team and the League, as it would tarnish the game he has devoted his entire life to."
James Trusty, representing Rozier, said the arrest came as a surprise, as prosecutors had previously characterized his client as "a subject, not a target" of the investigation.
“They appear to be taking the word of spectacularly incredible sources rather than relying on actual evidence of wrongdoing. Terry was cleared by the NBA and these prosecutors revived that non-case. Terry is not a gambler, but he is not afraid of a fight, and he looks forward to winning this fight.”
The NBA conducted its own investigation in 2023 following the unusual betting activity involving Rozier and found no violation of league rules at that time.
Background on the Accused
Billups, inducted into the Basketball Hall of Fame in 2024, played 17 seasons in the NBA and earned $106.8 million during his playing career. He was named NBA Finals Most Valuable Player in 2004 when the Detroit Pistons defeated the Los Angeles Lakers. He has coached the Trail Blazers since 2021.
Rozier, 31, is in his 11th NBA season and has earned approximately $160 million during his career. He has appeared in 665 games, averaging 13.9 points per game across stints with the Boston Celtics, Charlotte Hornets, and Miami Heat.
The federal investigations remain active, with prosecutors indicating that additional indictments may be forthcoming. Sources told ESPN that the FBI has been interviewing college athletes and believes charges related to college basketball betting may follow.
Source: Federal Bureau of Investigation / U.S. Attorney’s Office for the Eastern District of New York
