Good morning. From New York, federal authorities announced a historic wave of arrests following a massive investigation that entangled both the NBA and elements of La Cosa Nostra. FBI Director Cash Patel described the coordinated operation as a “wide-sweeping criminal enterprise,” revealing the most significant sports corruption case since the legalization of online betting.

Among those arrested were Portland Trail Blazers head coach Chauncey Billups, Miami Heat guard Terry Rozier, and former NBA player Damon Jones. In total, more than 30 individuals were taken into custody across 11 states. Contrary to sensationalized rumors claiming that over 200 NBA players were involved, federal authorities confirmed that only three current or former NBA figures were charged.

The investigation uncovered two interconnected criminal operations: Operation Royal Flush and Operation Nothing But Bet.

Operation Royal Flush exposed a network of rigged, high-stakes poker games hosted in elite locations such as Manhattan penthouses, Miami estates, Las Vegas suites, and Hamptons mansions. These exclusive gatherings lured wealthy victims with the promise of playing poker alongside NBA stars and celebrities. However, the games were anything but fair.

Organizers used sophisticated cheating technology, including X-ray card shuffling machines, marked cards visible only through special contact lenses, and hidden cameras feeding real-time information to accomplices. Dealers in on the scam ensured that the “house players” — often including well-known faces like Billups and Jones — always had the advantage. Over time, victims were defrauded of at least $7 million, with some losing up to $1.8 million in a single night. Those who refused to pay were intimidated or threatened by mob enforcers.

But the poker scheme was only half the story.

Operation Nothing But Bet focused on an insider sports betting conspiracy that exploited confidential NBA information between December 2022 and March 2024. This scheme involved placing fraudulent wagers on NBA games using insider knowledge about player injuries, minutes restrictions, and game plans — a system eerily similar to insider trading on Wall Street.

According to the federal indictment, Terry Rozier allegedly shared confidential information about seven Hornets games during the 2023–24 season. In one instance, on March 20, 2023, he played only nine minutes against the Pelicans, allowing co-conspirators to profit by betting on his “under” statistics. The group allegedly made over $200,000 from that single manipulation.

Meanwhile, Damon Jones, who worked informally with the Los Angeles Lakers in 2023, leaked injury information about LeBron James before a February Lakers–Bucks game. Though LeBron’s injury was legitimate, the news had not yet been made public, giving Jones’s associates a major betting advantage. Similarly, Chauncey Billups was accused of sharing inside information about Trail Blazers players sitting out a March 2023 game, enabling others to profit before the betting lines adjusted.

The poker and betting schemes were intertwined, with several individuals — including Jones — allegedly using the rigged poker games to launder profits from the insider betting operation.

FBI Director Patel compared the case to an “NBA version of insider trading,” citing its vast scope and ties to organized crime. The scandal also reignited debate about the NBA’s close relationship with the gambling industry, which has grown dramatically since the 2018 Supreme Court decision legalizing sports betting nationwide. With partnerships involving DraftKings, FanDuel, and MGM Resorts, the league has fully embraced betting as a revenue stream — a move that now faces intense scrutiny.