Trail Blazers coach Billups, Miami's Rozier among over 30 arrested in two federal gambling-related investigations

Two of the nation’s biggest online sports books market defended the legal market after today’s indictments.

“Today’s events are deeply disturbing, and should concern fans, athletes, and everyone who loves sports and values integrity and fair play,” a spokesperson for FanDuel said.

“They also illustrate the stark contrast between legal and illegal betting markets. At FanDuel, we use advanced technology and real-time monitoring to identify suspicious activity and work closely with leagues, data monitoring groups, and law enforcement,” the spokesperson said.

DraftKings also defended the legal market.

“We fundamentally believe that regulated online sports betting is the best way forward to monitor for and detect suspicious behavior while offering consumer protections backed by advanced technology, neither of which exist in the pervasive illegal market,” DraftKings said.

Legal sports books were used the illegal NBA sports betting scheme, which FBI Director Kash Patel compared to insider trading, but which ones were not named at a news conference.

They are not accused of any wrongdoing.

“The sports books themselves are victims in this case,” Joseph Nocella, Jr., U.S attorney for the Eastern District of New York, said at a news conference. 

Portland Trail Blazers coach Chauncey Billups appeared in federal court today and acknowledged his right to remain silent with “yes,” according to a reporter from NBC affiliate KGW of Portland who was there.

Billups did not make any plea in the appearance at U.S. District Court in Portland.

He was released on conditions after an an agreement between prosecutors and defense attorneys, according to KGW. Those conditions include travel restrictions, no gambling activity, a no contact order and standard conditions regarding firearms, according to the station.

Shortly after being asked to put his home up as collateral, Terry Rozier walked out of the Orlando courthouse of his own accord.

Rozier waived his right to have his future hearings in Florida, and his next expected court date will be in Brooklyn, New York, in December. He was ordered to surrender his passport to authorities by tomorrow afternoon.

The judge also ordered him not to gamble, "either in person or using an online device."

Miami Heat guard Terry Rozier leaves the federal courthouse through a side door after his arraignment Thursday. Phelan M. Ebenhack / AP

Attorney Jim Trusty told reporters he thinks his client has a "great case" following Rozier's initial hearing at a federal courthouse in Orlando, Florida, this afternoon.

The attorney denied that Rozier faked an injury in a game where he allegedly tipped off his childhood friend that he would be leaving early. Prosecutors said that friend later sold the information as part of a sports betting ring.

Rozier had a medical follow-up after leaving a game in March 2023, his attorney said.

"He had a bunch of people that he appropriately confided in, and he had an injury, and he didn't play another game," Trusty said.

He later added, "This is not Jontay Porter."

Terry Rozier is expected to be released from federal custody later today after a Florida judge denied a request from prosecutors to set a $10 million bond for the NBA star.

Instead, the judge only required Rozier to put up his $6 million Florida home as collateral for bond and surrender his passport by tomorrow afternoon.

Rozier appeared in court wearing a black Hornets hoodie, gym shorts and low-top sneakers. 

Vouching for his client’s character, Rozier’s attorney Jim Trusty told the court that Rozier is "a man who doesn’t gamble." Trusty also used the presence of Rozier's mother in court to emphasize that he is not a flight risk.

The government did not seek detention, but rather sought $10 million bond, citing Rozier’s $20 million salary and $130 million earnings over the years, as well as other valuables and property.

The Portland Trail Blazers released a statement saying they were cooperating with authorities following the arrest of head coach Chauncey Billups and have named assistant coach Tiago Splitter as the interim head coach.

“We are aware of the allegations involving head coach Chauncey Billups, and the Trail Blazers are fully cooperating with the investigation," the statement said.

"Billups has been placed on immediate leave, and Tiago Splitter will assume head coaching duties in the interim," the team announced. "Any further questions should be directed to the NBA."

Tiago Splitter. Jean Catuffe / Getty Images file

Former Toronto Raptors center Jontay Porter is mentioned in today's sports betting indictment, but Porter himself is not named as a defendant in the scheme.

Porter pleaded guilty in 2024 to conspiracy to commit wire fraud over a betting scandal that prompted the NBA to ban him. The former center gave tips to other men that he was going to exit two games early, allowing them or their relatives to place big bets, according to a complaint filed in his case.

During his plea hearing, Porter said he agreed to withdraw from games to clear his own gambling debts. An NBA investigation into Porter found that he also wagered on games that he didn't play in, even betting against his own team at least once.

Toronto Raptors center Jontay Porter in 2024. David Zalubowski / AP file

Porter faces up to four years in prison in addition to large fines, but his sentencing has been delayed.

The Operation Noting But Bet indictment mentions both games Porter pulled out of, alleging that one of Porter's conspirators gave the information to defendants named in the indictment to place bets.

Six named suspects in Operation Nothing But Bet are facing charges stemming from financial crimes as part of a larger alleged scheme to sell information for bets.

According to prosecutors, a group of co-conspirators that included Jones and Rozier gave the nonpublic information to a network of individuals to place bets.

The bets were allegedly all made with the intention of profiting off the scheme at the expense of the betting companies. Many of the wagers were placed in connection with betting lines that did not reflect or account for the private information, the indictment said.

That's what makes the wagers more profitable.

The bets were allegedly made using mobile applications and retail sportsbooks. Prosecutors say the conspiracy resulted in materially false and misleading representations being made to the betting companies.

Suspects and their co-conspirators were also involved in payments using a variety of platforms, including peer-to-peer payment transfers, bank wires and cash exchanges, the prosecutors alleged.

The arrests could have a destabilizing effect on the Portland Trail Blazers and the Miami Heat as the NBA season begins. NBC News’ Andrew Greif details the implications these investigations will have for the teams and the league.

03:14

Jones also allegedly sold other nonpublic information about a Lakers player to conspirators that led to a $100,000 bet against the team during a Jan. 15, 2024, game against the Oklahoma City Thunder.

According to the indictment, Jones gave away information about an athlete identified only as Player 4 being injured before the game. The information was not public at the time and the bet was made hours before the player was listed as "probable" in the NBA's injury report.

Anthony Davis was the only Lakers player listed as probable on the injury report from that day.

"Ultimately, Player 4 played in the January 15 Game in line with his season average in minutes and performed well, and the Lakers won the game," the indictment said.

Anthony Davis of the Los Angeles Lakers plays against the Oklahoma City Thunder on Jan. 15, 2024. Ronald Martinez / Getty Images file

Jones allegedly sold information on a prominent player's injury to sports bettors while he was an unofficial assistant coach for the Los Angeles Lakers in February 2023.

The indictment said that over the years Jones had been both a teammate and a coach of the unnamed player while Jones played on the Cavaliers and coached for the Lakers. That relationship allowed him access to "non-public information" about that player's medical status on Feb. 9, 2023, when the Lakers were playing the Milwaukee Bucks.

Jones allegedly texted his co-conspirator that the player would be out that night and to "Get a big bet on Milwaukee tonight before the information is out!" according to the indictment.

LeBron James, power forward for the Lakers, was out that night due to a sore left ankle and foot, according to a game recap.

Prosecutors allege that the suspects raked in at least $7,150,000 through the rigged poker games since April 2019, according to the unsealed indictment.

Suspects in the case allegedly used threats and violence to ensure the victims paid their debts from the illegal games, the indictment said. In at least one case, a man identified as John Doe No. 5 was allegedly extorted by three of the defendants to get him to repay the debt.

The indictment says that games occurred across the country, including Manhattan, Las Vegas, East Hampton and Miami.

Terry Rozier gave private information about his plan to leave a March 2023 game early to his childhood best friend, who sold the information to conspirators who would place bets on the game, an unsealed indictment alleged.

A second indictment released today in Operation Nothing But Bet alleges that Rozier planned to remove himself from the first quarter of the Charlotte Hornets game against the New Orleans Pelicans over a supposed injury. Prosecutors said he gave that information, which the Hornets weren't aware of, to his childhood best friend, who was also named in the indictment.

His friend was promised approximately $100,000 from the expected fraudulent gambling winnings, the indictment said.

The first indictment includes 32 defendants on a range of charges.

Those felonies include: wire fraud conspiracy, money laundering conspiracy, operation of an illegal gambling business in relation, and robbery and extortion conspiracy under the Hobbs Act, court documents show.

The second indictment, which focuses on the alleged sports betting conspiracy, only names six defendants facing charges of wire fraud and money laundering.

An unsealed indictment released today lays out allegations of a multiyear rigged poker scheme that brought in thousands of dollars, and in one case nearly $2 million in winnings.

The indictment alleges that a group organized illegal poker games that were rigged against wealthy victims. They used well-known former professional athletes to lure their victims, referring to the celebrities as "face cards," the document said.

"The Face Cards were members of the Cheating Teams and received a portion of the criminal proceeds in exchange for their participation in the Scheme," the indictment said.

Chauncey Billups and Terry Rozier are on immediate leave from their NBA teams, the league said Thursday in its first statement following news of their arrests.

"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."

Federal officials today referred to La Cosa Nostra, which is a name for the Sicilian Mafia organizations.

In New York, there are five notorious Mafia groups commonly referred to as the "Five Families." Those organizations today include the Lucchese, Gambino, Genovese, Colombo and Bonanno families.

Their origins date back to the 1930s, when a bloody power struggle among crime families in New York, known as the Castellammarese War, took place, according to the Encyclopedia Britannica.

The inner workings of these organized crime rings became public when Joe Valachi, a member of the Genovese crime family, testified at congressional hearings in 1963. Officials sought to crack down on organized crime in 1970, passing the Racketeer Influenced and Corrupt Organizations (RICO) Act.

One of the most famous crackdowns on the Mafia was led by then-U.S. Attorney Rudy Giuliani, who brought charges against members of all five families in the 1980s. The trial was called the "Mafia Commission" case, a reference to the meeting of all five family heads.

It's considered among the most successful racketeering cases, resulting in guilty verdicts against eight different men.

Defendants being charged in the alleged poker scheme "committed acts of violence," including extortion to ensure victims paid their gambling debts and a robbery at gunpoint to get a rigged card shuffling machine, U.S. Attorney Joseph Nocella said.

Their profits were then allegedly laundered "through cash exchanges, the use of multiple shell companies and through cryptocurrency transfers," he said.

The major gambling case announced by the FBI and Justice Department this morning predated the Trump administration, a source familiar with the investigation told NBC News.

Officials mentioned during the press conference that the case was tied to the case against Jontay Porter, who was charged under the Biden administration. Porter pleaded guilty back in July 2024, before Biden had even dropped out of the 2024 presidential race. The source told NBC News that the same prosecutorial team worked on all of the cases.

Tisch detailed how Rozier was allegedly involved in the NBA betting scheme, citing a March 2023 date when he was still playing for the Charlotte Hornets.

He allegedly "let others close to him know that he planned to leave the game early with a supposed injury," Tisch said.

Terry Rozier with the Charlotte Hornets in 2023. Kate Frese / NBAE via Getty Images file

Thanks to Rozier's information, members of the scheme placed "more than $200,000 on his under statistics," Tisch alleged, noting that the bets "generated tens of thousands of dollars in profits," which were later delivered to Rozier at home.

"As the NBA tips off, his career is already benched, not for injury, but for integrity," Tisch added.

Officials said today that the NBA has been cooperating with their investigation into a number of professional basketball players in relation to the alleged gambling schemes.

Victims in the alleged poker scheme were "cheated out of" at least $7 million, said Ricky Patel, the special agent in charge of Homeland Security Investigations in New York.

"We discovered a sprawling criminal enterprise that utilized cutting-edge technology and various methods of deception to dupe unsuspecting gamblers into paying up so that these defendants could cash out as alleged," he added.

Christopher Raia, assistant director in charge of the FBI's New York field office, gave an impassioned statement on the threat of organized crime at today's press conference.

"Let me be clear about this fact: The FBI has not and will never take their eye off the ball when it comes to Italian organized crime in this city, specifically the [La Cosa Nostra] and the five families here in New York," Raia said.

He went on to thank the FBI's New York Eurasian Organized Crime Task Force for its work on the case.

New York Police Commissioner Jessica Tisch said the investigation into the alleged scheme involving fraudulent NBA bets was dubbed "Operation Nothing But Bet."

Official: Investigation into alleged gambling scheme dubbed 'Operation Royal Flush'

01:47

Federal officials are calling the investigation into the alleged poker scheme "Operation Royal Flush," according to Ricky Patel, the special agent in charge of Homeland Security Investigations in New York.

He added that dozens of suspects were arrested early this morning. He described the alleged involvement of three La Cosa Nostra crime families as a "wakeup call."

"The years of investigative work that culminated with this morning’s operations seem reminiscent of a Hollywood movie, but this wasn’t luck, and this wasn’t theatrics," he said. "This was an evidence-driven, relentless and unified effort among law enforcement through what we have dubbed 'Operation Royal Flush.'"

Prosecutors allege that during the fraudulent poker games, those involved used technology to rig the games and cheat victims.

Some of those allegedly included poker chip tray analyzers, which Nocella described as poker chip trays that secretly read cards with a hidden camera and special contact lenses or eyeglasses that can read pre-marked cards.

An X-ray table that could read cards face down on the table was also used, Nocella alleged.

Three of the more than 30 defendants targeted in today's indictments were allegedly involved in both the sports betting scheme and the fraudulent gambling scheme, said Christopher Raia, assistant director in charge of the FBI's New York field office.

It was not immediately clear which of the three were indicted in connection with both schemes.

As part of the alleged scheme to fix poker games, professional athletes were allegedly used to lure victims to the table, with prosecutors describing them as "face cards."

"The so-called face cards included the defendant Chauncey Billups — who at the time of the scheme was a former NBA player and is currently the head coach of the Portland Trail Blazers — and also Damon Jones, a former NBA player," Nocella said.

The victims were allegedly referred to as "fish," people who had no idea that everyone else at the table was in on the scam, Nocella said Thursday.

"Once the game was underway, the defendants fleeced the victims out of tens or hundreds of thousands of dollars per game," the prosecutor said.

Fish and face cards: Authorities break down 'rigged poker games' investigation

04:22

The second indictment was allegedly involving a nationwide scheme to rig illegal poker games.

U.S. Attorney Joseph Nocella Jr. said 31 people have been taken into custody in connection with this scheme, including former professional athletes. The suspects allegedly used high-tech cheating technology to steal millions of dollars from secretly rigged underground poker games.

These games were backed by the Bonanno, Gambino and Genovese crime families, Nocella said. The federal prosecutor reminded the public that these remain allegations until proved otherwise in court.

"But my message to the defendants who have been rounded up today is this: Your winning streak has ended," Nocella said. "Your luck has run out — violating the law is a losing proposition, and you can bet on that."

The two indictments being unsealed today both have to do with a fraud ring — one involves sports betting and the other involves illegal gambling.

The first involves six people who engaged in "one of the most brazen sports corruption schemes," U.S. Attorney Joseph Nocella Jr. said, including Rozier.

He referenced Jontay Porter, who was arrested earlier this year for his alleged role in the scheme.

"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," he added.

The alleged scheme involved planning around when players would be sitting out future games or when they planned to pull themselves out of games due to injury.

The group allegedly relied on NBA insiders to place thousands of dollars in sports bets through an online sports book and in casinos.

"Most of these bets succeeded, and the intended losses were in the millions of dollars," Nocella said. "The defendants then laundered their illegal winnings in various ways, peer-to-peer platforms, bank wires and simple cash exchanges."

Defendants are facing charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.

'Your winning streak has ended': Officials announce charges in sports corruption scheme

02:39

It appears that four of the five most notorious Mafia families have some connection to the gambling case, according to FBI Director Kash Patel.

"Not only did we crack into the fraud that these perpetrators committed on the grand stage of the NBA, but we also entered and executed a system of justice against La Cosa Nostra to include the Bonanno, Gambino, Genovese and Lucchese crime families," Patel told reporters.

He did not provide additional details at the top of the press conference, but said more details on the mob's involvement would come.

FBI Director Kash Patel joined New York officials at a news conference announcing a "wide sweeping criminal enterprise" this morning.

The "illegal gambling operation and sports rigging operation" spanned years, he said, noting that the FBI worked across 11 states to arrest more than 30 individuals on charges that range from wire fraud and money laundering to extortion, robbery and illegal gambling, he said.

"The fraud is mind-boggling," Patel said, describing tens of millions of dollars in fraud.

Prosecutors have moved to unseal the indictments in a case they say involves more than two dozen people.

John Marzulli, a spokesperson for the U.S. Attorney's Office for the Eastern District of New York, said the two men will be arraigned sometime today. Rozier will attend a hearing in Florida, while Billups will be arraigned in Portland.

More people are expected to be named in the case, as dozens have already been detained.

"I believe there's about 31 people in custody, and others will be there, will be some who will self-surrender," Marzulli said.

Tommy Gelardo was also arrested this morning, an FBI spokesperson said.

Chauncey Billups is set to be arraigned later today in Portland, where he resides, officials with the Eastern District of New York said in a press conference. He will face charges in Brooklyn in relation to the case.

Jim Trusty, the lawyer representing Terry Rozier, said he reached out to prosecutors before Rozier's arrest this morning to "have an open line of communication."

At the time, "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," Trusty said.

He called it "unfortunate" that prosecutors "opted for a photo-op" instead of allowing Rozier to turn himself in.

"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," Trusty said. "They appear to be taking the word of spectacularly in-credible sources rather than relying on actual evidence of wrongdoing."

Trusty noted that Rozier was "cleared by the NBA" and that prosecutors are now bringing back to life what he called a "non-case."

"Terry is not a gambler, but he is not afraid of a fight, and he looks forward to winning this fight," Trusty said.

Chauncey Billups entered coaching following a widely lauded 17-season playing career that culminated in the sport’s highest honor: enshrinement in the Naismith Basketball Hall of Fame in 2024.

Thursday’s arrests occurred the morning after the Trail Blazers, the team Billups has coached since 2021, opened their season with a 114-118 loss to the Minnesota Timberwolves.

A high school and collegiate star out of Colorado, Billups, 49, entered the NBA in 1997 as the third overall draft pick. By 2014, his clutch baskets and on-court leadership were vital to Detroit’s NBA championship over the Lakers. The title run earned him the nickname "Mr. Big Shot," the honor of being named the NBA Finals MVP, and transformed his career. Between 2006 and 2010, Billups was voted an All-Star five times.

Chauncey Billups of the Detroit Pistons drives against Jameer Nelson of the Orlando Magic in 2008. D. Lippitt / Einstein / NBAE via Getty Images file

After retiring in 2014, Billups worked as an NBA analyst for ESPN. After one season as an assistant coach with the Los Angeles Clippers, he was hired by the Portland Trail Blazers in 2021.

NBA player Terry Rozier is set to appear in federal court this afternoon in Orlando, the court has confirmed. His first appearance after being arrested this morning is expected between 1:30 p.m. and 3 p.m.

The FBI has confirmed that former player Damon Jones has been arrested in Las Vegas. No further details were released.

Jones played for the Cleveland Cavaliers and several other teams.

Damon Jones with the Cleveland Cavaliers in 2006. Ron Hoskins / NBAE via Getty Images file

Chauncey Billups, coach of the Portland Trail Blazers, has also been arrested in the probe, two law enforcement officials say. Billups’ attorney did not immediately respond to a request for comment

Chauncey Billups before a game in 2024. Alika Jenner / Getty Images file

The FBI and other officials will be announcing charges later this morning in the federal gambling-related investigation, two senior law enforcement officials told NBC News.

Members and associates of organized crime groups are among the couple dozen people expected to face criminal charges in two separate illegal gambling-related cases.

Miami Heat guard Terry Rozier was arrested on Thursday morning in Orlando, Florida, in a federal gambling-related investigation, two senior law enforcement officials told NBC News.

Rozier joined the Heat in 2024 from the Charlotte Hornets. The Ohio native and 10-year NBA veteran was picked 16th overall by the Boston Celtics in the 2015 NBA draft, after playing college basketball for the Louisville Cardinals.

It is not immediately clear which case Rozier is allegedly involved with. The Miami Heat did not immediately respond to a request for comment.

Read the full story here.