Read the gambling scandal in one article: Jones took advantage of James injury to profit; Billups was accused of money laundering fraud

On October 24, Trail Blazers coach Billups, Heat guard Rozier, and former NBA player/coach Damon Jones were arrested in connection with the FBI's investigation into illegal sports betting activities and illegal poker games. This nationwide arrest operation involved more than 30 people and caused an uproar. The following are the specific details of the three people involved in the case -

Terry Rozier

Previously, Rozier had been investigated by the NBA for suspected illegal betting, but the league did not find any violations, and the FBI investigation was still ongoing at the time.

Rozier was detained in Orlando on Thursday morning local time after the Heat lost 121-125 to the Magic. Federal authorities allege that while playing for the Charlotte Hornets in 2023, he told members of a gambling ring that he would leave the game early.

Informed insiders used this undisclosed inside information to place high bets on Rozier's "lower-than-expected numbers" at multiple sports betting companies.

On March 23, 2023, Rozier left the game early due to "injury". It is said that the defendant bet more than $200,000 on the "lower than expected data" option of his special bet that day. Rozier left the game after playing just nine minutes and did not return, and ultimately those bets were deemed winners and paid out.

The person Rozier informed in advance won millions of dollars through this bet, and later went to Rozier's home to take stock of the winnings.

Nocera, the U.S. Attorney for the Eastern District of New York, who is in charge of promoting this federal investigation in conjunction with the FBI, said at a press conference that Rozier and other persons involved in the case are "corrupt elements" who provided inside information, resulting in frequent illegal sports betting activities from 2022 to 2024.

He called the scheme an "internal sports betting conspiracy using confidential information about NBA players and teams." The FBI named the first batch of indictments involving Rozier, former NBA player and coach Damon Jones and four others "Operation Bets Only."

The FBI also pointed out that the gambling activities involved involved four NBA teams, namely the Toronto Raptors, Charlotte Hornets, Portland Trail Blazers and Los Angeles Lakers. Currently, no other players, coaches or NBA staff have been included in the investigation.

Rozier's lawyer Jim Trusti said: "We have represented Rozier's case for more than a year. We contacted the prosecutors a long time ago, hoping to establish an open channel of communication. They had previously designated Rozier as a 'person of interest' rather than a 'target of investigation,' but they called at 6 o'clock this morning to tell him that FBI agents were trying to arrest him at the hotel. They were unwilling to let Rozier surrender voluntarily, and instead chose to engage in a 'photo show,' which is regrettable."

"They wanted to Gaining undue attention by publicly humiliating professional athletes is enough to illustrate the impure motives of this case. They appear to be more willing to trust sources of low credibility rather than rely on solid evidence of a crime. The NBA has long clarified that Rozier was not responsible, but these prosecutors have revived this "unsubstantiated case." Rozier is not a gambler, but he is not afraid of fighting and expects to win the case. "

FBI Director Kash Patel called the incident "the NBA version of insider trading" on Thursday. It has yet to be determined whether Rozier's contract will lapse and whether he will be removed from the Heat's salary space. If he is ultimately convicted by the FBI investigation, the NBA has the right to determine that he is ineligible to participate in the competition, and his contract will also be excluded from the Heat's salary cap, luxury tax and tax bracket calculations. Rozier is currently in the final year of his contract, with a total amount of US$96.2 million, and his salary this season is US$26.6 million. According to the FBI indictment, he faces charges of money laundering and wire fraud conspiracy.

Rozier appeared in court today wearing handcuffs, shackles, and a Hornets hoodie (he currently plays for the Heat). His defense lawyer accused the prosecutor of being "harsh and inhumane." Rozier was released today, his Florida home worth $6 million has been used as bail collateral, and he must surrender his passport by tomorrow afternoon.

Chauncy Billups

On Wednesday night local time, the Trail Blazers lost to the Timberwolves 114-118 at home. Billups was arrested by federal agents at his Portland home early Thursday morning and charged in a separate indictment with participating in a massive underground poker game-fixing scheme backed by a Mafia family.

FBI Director Kash Patel said that members of "Our Cause" (the name of the American Mafia), including the Bonanno family, the Gambino family and the Genovese family, are all related to the investigation.

A total of 31 defendants were indicted in this investigation, and Billups and Damon Jones were both involved in the case for manipulating poker games. The illegal activity allegedly occurred in the Hamptons, Miami, Las Vegas and Manhattan.

The poker manipulation scheme involving Billups, the Mafia family and other persons involved specifically targets specific groups of people and organizes them to play high-stakes poker games with professional athletes including Billups and Jones. Billups was used as a "gossip" to lure "novice players" into illegal and rigged poker games.

FBI investigation showed that the tampered card shuffler read the deck information when the cards were dealt and passed the information to the "commander" outside the venue. After analysis, this information will be quickly passed to relevant personnel at the game site.

The scheme also used other cheating techniques, including built-in hidden cameras, chip trays that could read cards, and special glasses that could identify marked cards. The FBI alleges that the defendant robbed one victim at gunpoint to obtain a tampered card shuffling machine; another person lost as much as $1.8 million in a rigged poker game.

This investigation has lasted for four years, and the victims have lost at least US$7 million. The FBI named the relevant indictment "Operation Royal Flush," which is related to Operation Only Bets..

Billups has served as the head coach of the Trail Blazers since 2021 and renewed a multi-year contract with the team in April 2025. Similar to Rozier, the Trail Blazers coach faces charges of money laundering and wire fraud conspiracy. Each count carries a maximum sentence of 20 years. It is reported that Billups also told one of the conspirators at the time that the Trail Blazers would start to mess up and that they would deliberately lose games to increase the odds of getting a better pick in the upcoming NBA draft. The person used this non-public inside information to start placing bets, amounting to at least $5,000.

The Trail Blazers have officially announced that Billups has resigned, and assistant coach Split will serve as the team's interim coach.

Damon Jones

Unlike Rozier and Billups, who were only involved in one investigation, Jones's name appeared in both "Operation Royal Flush" and "Operation Only Bets". He is the only person in the NBA to be involved in two scandals at the same time.

The indictment shows that Jones and Lakers star James have been friends for many years. In 2023, he leaked non-public information about James' ankle injury and tried to profit from it. James didn't know this.

According to The Athletic, James did not appear on the court during the Lakers' game against the Bucks on February 10, 2023, and Jones tried to profit from this information. And Jones was not a Lakers employee when the incident occurred. The information Jones had and attempted to sell or profit from, including player absences and early departures, enabled others to place targeted player-specific bets and achieve quick wins.

The indictment shows that before the game on February 10, 2023, Jones sent a text message to an unnamed co-conspirator, saying that a certain player (referring to James) would be absent and suggested that the other party bet on the Bucks.

In addition to participating in the illegal sports betting investigation, Jones was also involved in the poker scandal related to Billups and the Mafia family.