The Athletic has live coverage of the U.S. federal betting investigation into NBA players.

NEW YORK – Just two days into its new season, the NBA was rocked by a sweeping federal investigation into illegal gambling charges announced Thursday, which resulted in the arrests of a head coach, a current player and a longtime confidant of the game’s most prolific scorer, and allegedly involved the participation of four reputed mafia crime families in New York.

Hall of Fame player and current Portland Trail Blazers coach Chauncey Billups, Miami Heat guard Terry Rozier and Damon Jones, a former player who was a teammate of LeBron James and was once his personal shooting coach, were charged as federal prosecutors unsealed two separate indictments.

“This is the insider trading saga for the NBA,” FBI director Kash Patel said at a federal courthouse in Brooklyn.

Billups, 49, inducted into the hall of fame in 2024, was indicted for his alleged participation in a wide-ranging, years-long scheme to defraud card players in poker games that were said to have involved numerous members of the Bonano, Gambino, Luchese and Genovese crime families in New York. His alleged role in the rigged poker game scheme dates back to 2019, according to that indictment. He was part of a game that year that took at least $50,000 from victims, prosecutors say. Eric Earnest, who was charged in both indictments, was alleged to be a part of rigging that game.

And while Billups is not named in the other indictment, he does match the description of Co-Conspirator 8, who prosecutors say tipped off Earnest that the Blazers would be resting top players ahead of its March 24, 2023 game. The co-conspirator is described by prosecutors as a resident of Oregon who played in the NBA from 1997 through 2014 and has been a coach since 2021. Billups played in the NBA from 1997 until 2014, and the Blazers hired Billups as their head coach in June 2021.

Rozier, 31, is charged in that indictment for allegedly taking himself out of a game on purpose in 2023 so a co-conspirator could place a bet and win. These charges stem from the ongoing investigation that produced a guilty plea — and subsequent lifetime ban from basketball — for former Raptors player Jontay Porter, who bet on NBA games and manipulated his own performance so co-conspirators could win money on prop bets. Porter pleaded guilty in July 2024 to one felony count of conspiracy to commit wire fraud.

Jones, 49, was charged in both cases. The two indictments include 34 defendants, with 13 men accused of being involved in organized crime.

Jones is a former teammate of James with the Miami Heat, and James brought Jones to Cleveland in 2014, first as his personal shooting coach. Jones was later promoted to a full-time assistant coach with the Cavs and joined James in Los Angeles. Jones was not formally employed by the Lakers, but was around the team often and was allowed to fly to away games on the team plane.

Jones, the indictment said, was a teammate or coach “of a prominent NBA player,” who it called Player 3. It said that Jones used his relationship with that player and the team to gain information that he then sold to professional gamblers. Jones, according to prosecutors, found out on the morning of Feb. 9, 2023, that Player 3 would not play in the Lakers’ game against the Bucks that night and told an unnamed co-conspirator to place a “big bet” on the Bucks because he was out. Player 3 had not been named on the team’s injury report yet but would miss the game. James did not play in that game.

A league source with knowledge of the situation told The Athletic that James was unaware that Jones shared information about his playing status.

Jones also shared information on another top Lakers player, the indictment said, ahead of a game on Jan. 15, 2024, after he learned from a trainer that the player was hurt and his minutes or performance would be affected. Marves Fairley, another defendant, bet $100,000 against the Lakers for that game, and the injury report simply said that the player was probable. The Lakers, however, won the game, and the player played to form. Fairley asked Jones to repay him the $2,500 he was paid for the information, according to the indictment.

Terry Rozier was one of three current and former NBA players arrested as part of a federal gambling probe. Photo by Scott Taetsch/Getty Images

United States Attorney Joseph Nocella Jr. called the charges against Rozier and Jones “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”

“This scheme is an insider sports betting conspiracy that exploited confidential information about National Basketball Association athletes and teams,” Nocella said.

“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 Lakers declined to comment.

“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.”

Rozier was taken into custody in Orlando, where the Heat played on Wednesday night, and is expected to appear at a hearing in federal court there Thursday. Billups was also arrested on Thursday after coaching the Blazers’ season-opening home loss to the Minnesota Timberwolves on Wednesday night. He was released after appearing before Judge Jolie Russo in US District Court in Portland on counts of conspiracy to commit wire fraud and money laundering.

Wearing a brown hoodie and gray sweatpants, Billups agreed to appear in Eastern District Court in New York on Nov. 24. In the meantime, Billups agreed to a set of rules laid out by prosecutors that included travel restrictions, forfeiting his passport and no gambling. The hearing was attended by his wife, Piper, and a daughter.

Arraignment hearings for them and for Jones are expected in New York this week.

Rozier’s alleged crime occurred in 2023, when he was playing for the Charlotte Hornets. The federal indictments name illegal betting activities, in addition to the Hornets and Lakers.

The government alleges that Rozier told a co-defendant, Deniro Laster, that he was going to take himself out of the first quarter of a Hornets game with an injury on March 23, 2023, so Laster could bet on it. Laster shared that information and was paid $100,000 for it by Fairley, according to the indictment. That information was then shared with others, who bet on it. Another defendant, Shane Hennen, bet $61,200 on prop bets related to Rozier, and then ordered a syndicate of associates to bet too, according to the government.

In all, $259,000 was wagered on Rozier by that group. Rozier left that game after playing 9 minutes, 34 seconds.

In a statement, Jim Trusty, Rozier’s lawyer, said, “We have represented Terry Rozier for over a year. A long time ago we reached out to these prosecutors to tell them we should have an open line of communication. They characterized Terry as a subject, not a target, but at 6 a.m. this morning they called to tell me FBI agents were trying to arrest him in a hotel.

“It is unfortunate that instead of allowing him to self surrender they opted for a photo op,” Trusty said. “They wanted the misplaced glory of embarrassing a professional athlete with a perp walk. That tells you a lot about the motivations in this case.”

In January, the NBA said it had conducted an investigation after being notified about unusual betting activity related to Rozier’s performance in that game, and “did not find a violation of NBA rules.”

“Terry was cleared by the NBA and these prosecutors revived that non-case,” Trusty’s statement added. “Terry is not a gambler, but he is not afraid of a fight, and he looks forward to winning this fight.”

Fairley, one of the co-conspirators with Rozier, is accused along with an unnamed co-conspirator of using a personal relationship with one of the Orlando Magic’s starters ahead of an April 6, 2023, game to find out that the Magic would not play its entire starting lineup. They then bet on the game.

The indictment also said that one unnamed co-conspirator told a co-defendant, Earnest, that the Blazers were tanking ahead of a March 24, 2023 game, and that a certain player would sit out. Earnest then shared that information with Fairley, who shared it further and bet on it. Billups was coach of the Blazers then, but is not accused of wrongdoing in this particular case.

Billups and Jones are accused of participating in a mob-run, hi-tech scheme to defraud poker players in Miami, Las Vegas, the Hamptons, and New York. Both men were known as “Face Cards,” used by the cheating teams to help lure victims into the games. Wireless cheating technology was used to fleece the victims out of tens of thousands of dollars, including altered off-the-shelf shuffling machines.

Federal authorities investigated the poker ring for at least four years, and the name of the investigation was “Operation Royal Flush.”

Billups was inducted into the Hall of Fame as a player in 2024 following a 17-year career in which he was a five-time All-Star and the 2004 NBA Finals MVP.

Jones, 49, played 11 NBA seasons. As a player with the Heat and subsequently after his playing career was finished, Jones struggled with a gambling addiction that cost him large chunks of the millions he earned playing basketball, league sources said.

The Supreme Court opened the door to legalized sports gambling in May 2018 by ruling, essentially, that it was up to individual states.

The NBA has multiple business arrangements with major betting brands such as DraftKings, FanDuel and BetMGM, and several of its teams host sportsbooks in their arenas, in which they are paid a percentage of the handle, which is the amount of money wagered. (The Athletic also has a partnership with BetMGM.)

Under commissioner Adam Silver, the NBA (in conjunction with the other pro leagues) has sought a federal sports betting law from Congress, but many lobbying efforts have not gained traction.

Today, sports betting is legal and regulated in 38 states plus Washington, D.C., and Puerto Rico.

Nocella said the charges filed Thursday were not related to federal investigations into college sports betting.

Last month, the NCAA banned three basketball players, Mykell Robinson and Steven Vasquez of San Jose State and Jalen Weaver of Fresno State, and announced it was investigating 13 former men’s basketball players at Arizona State, Eastern Michigan, Mississippi Valley State, New Orleans, North Carolina A&T and Temple. Additionally, five former Iowa State football coaches received show-cause orders — basically a ban — for placing bets on college sports, including games involving their own teams.

In 1993, the NBA investigated its most famous player, Michael Jordan, for his ties to at least one gambler, whom he paid $57,000 to settle a wager stemming from a round of golf. According to reports, the league determined that Jordan did not wager on NBA games and violated no league rules.

In 2007, then-NBA official Tim Donaghy was caught betting on games in which he officiated. He was suspended and resigned, and served 11 months of a 15-month federal prison sentence after pleading guilty to two charges related to his gambling scheme.

Pete Rose, one of the greatest baseball players ever, accepted a lifetime ban from then-Major League commissioner Bart Giamatti for betting on games, including on his own team, the Cincinnati Reds. A difference between Rose and Porter’s alleged bets — Rose bet on the Reds to win.

In 2023 alone, the NFL suspended Quintez Cephus, C.J. Moore, Jameson Williams and Stanley Berryhill of the Detroit Lions; Isaiah Rodgers Sr., Rashod Berry and Demetrius Taylor of the Indianapolis Colts; Shaka Toney of the Washington Commanders; Nicholas Petit-Frere of the Tennessee Titans and Eyioma Uwazurike of the Denver Broncos for varying amounts of time due to gambling infractions.

Jason Quick, Ralph D. Russo and Dan Woike contributed reporting.