Gambling scandal mars NBA season tip-off as FBI conducts arrests

Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier were arrested this morning as part of a federal gambling investigation. The arrests were connected to two separate illegal gambling schemes that involved insider trading on NBA games and rigging high-stakes poker games with ties to organized crime. Former NBA player Damon Jones was also among the more than 30 people arrested. Billups arrested in Oregon in connection with a nationwide scheme to rig illegal poker games. Federal officials allege that the games, which involved the Bonanno, Gambino, and Genovese crime families, used sophisticated cheating technology. According to authorities, Billups was a "face card," or a celebrity presence at the table, used to attract victims to the fraudulent games. The indictment states that Billups' alleged involvement took place before he began coaching the Trail Blazers. The NBA has placed Billups on immediate leave.

Rozier was arrested in Florida, where he and five others are accused of operating an insider sports betting scheme. The group allegedly used confidential information about NBA players to place prop bets on individual player performance. An example cited by prosecutors involved a March 2023 game where Rozier, then with the Charlotte Hornets, allegedly told a co-defendant he would leave a game early with a fake injury, allowing the conspirators to profit from bets on his "under" statistics. The NBA had previously investigated this incident but found no wrongdoing at the time. The NBA has placed Rozier on immediate leave.

The investigation, dubbed "Operation Royal Flush," has been ongoing for years and reportedly involved tens of millions of dollars in fraud. The four teams named in the illegal sports gambling investigation as being bet on are the Charlotte Hornets, Los Angeles Lakers, Toronto Raptors, and Portland Trail Blazers.

The NBA released this official statement today:

"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."
And the NBA Players Association released the following:

“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. We will ensure our members are protected and afforded their due process rights through this process."