A gambling scandal rocked the sports world Thursday as federal authorities arrested more than 30 people — including Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier — following an investigation into an illegal sports betting and poker ring reportedly run by the Mafia.
Thursday’s arrests occurred across 11 states, with charges of wire fraud, extortion, illegal gambling and money laundering.
The two cases — one centered on illegal sports gambling, the other on rigged poker games — featured tens of millions of dollars, FBI Director Kash Patel said in a press conference on Thursday.
Mr. Billups and Mr. Rozier face money laundering and wire fraud charges. The other defendants feature members from four of the “Five Families” associated with the Mafia.
“The fraud is mind-boggling,” Mr. Patel said. “It’s not hundreds of dollars. It’s not thousands of dollars. It’s not tens of thousands. It’s not millions. We’re talking tens of millions of dollars in fraud, in theft, in robbery across a multiyear investigation.”
In addition to the still active Billups and Rozier, authorities arrested former NBA player Damon Jones in the sting. After his journeyman playing career ended in 2012, Jones was on the Cleveland Cavaliers’ coaching staff from 2016-18.
PHOTOS: Miami Heat’s Rozier, Trail Blazers' Billups arrested in federal gambling probe, sources say
“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.”
Rozier was among six people charged in “Operation Nothing But Bet.” Investigators believe the Heat guard used inside information he acquired as a player to share with gamblers in exchange for a fee or a cut of their betting profits, according to the indictment.
U.S. Attorney Joseph Nocella Jr. said the gambling ring “exploited confidential information” and used it to execute “one of the most brazen sports corruption schemes since sports betting became widely legalized in the United States.”
The NBA had already investigated Mr. Rozier in 2023 after sportsbooks flagged suspicious bets regarding his play with the Charlotte Hornets.
One sportsbook reported a surge in wagers that estimated that Mr. Rozier would hit the under on his points, rebounds and assists against the New Orleans Pelicans on March 23, 2023.
The bets were successful — Mr. Rozier left the game after 10 minutes, complaining of a foot injury.
NBA officials announced in January that they would not punish Mr. Rozier following a league investigation separate from the FBI probe.
The guard suited up for the Heat against the Orlando Magic on Wednesday night but did not play due to a coach’s decision. Authorities arrested him at an Orlando hotel on Thursday morning.
“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,” Jim Trusty, Mr. Rozier’s attorney, said in a statement to NBC News. “It is unfortunate that instead of allowing him to self-surrender, they opted for a photo op.”
The sports-betting indictment featured a handful of unnamed co-conspirators, including a Florida resident who was an NBA player, an individual from Oregon who was an NBA player from about 1997 to 2014 and a person who has coached in the NBA since 2021.
Mr. Jones was reportedly involved in both cases, the gambling ring and the rigged poker circuit, according to Mr. Nocella.
The gambling ring, which investigators called “Operation Royal Flush,” featured dozens of individuals running underground poker rings.
The card games were rigged, authorities said. Mr. Nocella claimed that the accused individuals used hidden cameras, specialized contact lenses and an X-ray table to secretly view cards to gain an advantage.
Mr. Billups was reportedly involved in the poker ring as a “face card.” The ring brought in unsuspecting players using the allure of his celebrity status.
In addition to his coaching career, the 49-year-old became a household name as a five-time All-Star and an NBA champion with the Detroit Pistons. In 2009, Mr. Billups received the NBA’s Joe Dumars Trophy, the league’s sportsmanship award.
The Mafia used violence and extortion to ensure that players paid their debts, New York City Police Commissioner Jessica Tisch said at Thursday’s press conference.
“Victims believed that they were sitting at a fair table,” Ms. Tisch said. “Instead, they were cheated out of millions.”
The indictment reported that one victim lost $1.8 million through the games.
“Your winning streak has ended,” Mr. Nocella said, addressing those who were arrested. “Your luck has run out. Violating the law is a losing proposition, and you can bet on that.”
Authorities arrested Mr. Billups in Oregon on Thursday morning. He coached the Trail Blazers in a season-opening home loss to the Minnesota Timberwolves on Wednesday.
The player-turned-analyst-turned-coach has led the Trail Blazers since 2021, amassing a 117-212 record.
• This story is based in part on wire service reports.