Understanding the Gambling Scandal: Jones Profited from James' Injury While Billups Faces Money Laundering and Fraud Charges

On October 24th Beijing time, Trail Blazers head coach Billups, Heat guard Rozier, and former NBA player/coach Damon Jones were taken into custody due to an FBI probe into unlawful sports gambling and illegal poker operations. This sweeping national arrest operation involved more than 30 suspects and sparked widespread attention. Below are the detailed allegations against the three individuals—

Terry Rozier

Previously, Rozier was investigated by the NBA for suspected illegal betting, but the league found no violations, while the FBI’s inquiry was still ongoing at that time.

After the Heat’s 121-125 loss to the Magic, Rozier was detained Thursday morning in Orlando. Federal authorities allege that during his 2023 tenure with the Charlotte Hornets, he informed members of a gambling ring that he would leave the game early.

Insiders used this undisclosed internal information to place large bets on Rozier’s “underperformance” in multiple sports betting companies.

On March 23, 2023, Rozier exited early citing an “injury.” It is reported that over $200,000 was wagered on the “underperformance” option linked to him that day. Rozier played only 9 minutes before leaving and did not return, resulting in those bets being declared winners and paid out.

Those informed by Rozier about his early exit won millions from these bets and were later seen counting their winnings at Rozier’s home.

New York Eastern District U.S. Attorney Norella, coordinating with the FBI on this federal investigation, described Rozier and other involved parties as “corrupt actors” who supplied insider information, fueling rampant illegal sports betting from 2022 to 2024.

He called the scheme an “inside sports betting conspiracy exploiting NBA players and team confidential information.” The FBI named the initial indictment involving Rozier, former NBA player and coach Damon Jones, and four others as “Operation Only Bet.”

The FBI also noted that the illegal betting activities involved four NBA teams: the Toronto Raptors, Charlotte Hornets, Portland Trail Blazers, and Los Angeles Lakers. So far, no other players, coaches, or NBA staff have been included in the investigation.

Rozier’s lawyer Jim Trusty stated, “We have represented Rozier for over a year. Long ago, we reached out to prosecutors to establish open communication. Previously, Rozier was classified as a ‘person of interest’ rather than a ‘target,’ but at 6 a.m. today, we were informed FBI agents attempted to arrest him at a hotel. They refused to let Rozier turn himself in voluntarily and instead chose a ‘public spectacle,’ which is regrettable.”

“They aim to gain improper attention by publicly humiliating a professional athlete, revealing the questionable motives behind this case. They seem to prefer unreliable informants over solid criminal evidence. The NBA has already cleared Rozier of wrongdoing, yet prosecutors resurrect this ‘baseless case.’ Rozier is not a gambler, but he is unafraid to fight and hopes to win this lawsuit.”

FBI Director Kash Patel on Thursday called this a “NBA-style insider trading case.” Whether Rozier’s contract will be voided or removed from the Heat’s salary cap is still undetermined. If convicted by the FBI, the NBA can rule him ineligible to play, and his contract would be excluded from the Heat’s salary cap, luxury tax, and tax tier calculations. Rozier’s current contract is in its final year, worth $96.2 million total, with a $26.6 million salary this season. According to the FBI indictment, he faces charges of money laundering and conspiracy to commit wire fraud.

Rozier appeared in court today wearing handcuffs and leg irons, dressed in a Hornets hoodie (though he currently plays for the Heat). His defense lawyer criticized the prosecution’s actions as “harsh and unfeeling.” Rozier was released today after posting his $6 million Florida property as bail collateral and must surrender his passport by tomorrow afternoon.

Chauncey Billups

On Wednesday night local time, the Trail Blazers lost 114-118 at home to the Timberwolves. Early Thursday, Billups was arrested at his Portland residence by federal agents and charged in a separate indictment for involvement in a large-scale underground poker game rigging scheme supported by mafia families.

FBI Director Kash Patel stated that members of “Our Business” (a nickname for the American Mafia), including the Bonanno, Gambino, and Genovese families, are connected to this investigation.

The investigation has indicted 31 defendants, with both Billups and Damon Jones implicated in poker game manipulation. These illegal activities reportedly took place in the Hamptons, Miami, Las Vegas, and Manhattan.

The poker rigging operation involving Billups, mafia families, and others targeted specific groups, organizing high-stakes poker games with professional athletes including Billups and Jones. Billups was used as a “figurehead” to lure “rookie players” into participating in these illegal, manipulated poker games.

FBI investigations revealed that the rigged shuffling machines read card deck information during dealing and transmitted it to off-site “controllers.” This information was analyzed and quickly relayed to personnel at the game location.

The scheme also employed other cheating methods, such as hidden cameras, chip trays capable of reading cards, and special glasses that identify marked cards. The FBI alleges the defendants once armed-robbed a victim to obtain a tampered shuffling machine; additionally, one individual lost up to $1.8 million in the rigged poker games.

This investigation has lasted four years, with victims losing at least $7 million. The FBI named the related indictment “Operation Royal Flush,” which is connected to “Operation Only Bet.”

Billups has been the Trail Blazers head coach since 2021 and signed a multi-year contract extension with the team in April 2025. Like Rozier,the coach faces charges of money laundering and conspiracy to commit wire fraud, each carrying a maximum sentence of 20 years. Reportedly, Billups told a co-conspirator that the Trail Blazers would start tanking games to improve their chances in the upcoming NBA draft, and that person used this non-public information to place bets of at least $5,000.

The Trail Blazers have officially announced Billups’ departure, appointing assistant coach Sprewell as the interim head coach.

Damon Jones

Unlike Rozier and Billups who are involved in only one investigation each, Jones appears in both “Operation Royal Flush” and “Operation Only Bet,” making him the only NBA figure implicated in two scandals simultaneously.

The indictment reveals Jones has been longtime friends with Lakers star LeBron James. In 2023, Jones leaked confidential information about James’ ankle injury and tried to profit from it without James’ knowledge.

According to The Athletic, during the Lakers vs. Bucks game on February 10, 2023, James did not play, and Jones attempted to exploit this information for gain. At the time, Jones was not employed by the Lakers. He possessed and tried to sell or profit from information about player absences and early exits, enabling others to place targeted player bets and quickly win.

The indictment states that before the February 10, 2023 game, Jones texted an unnamed accomplice claiming a player (referring to James) would be absent and advised placing bets on the Bucks.

Besides the illegal sports betting investigation, Jones is also implicated in the poker scandal involving Billups and mafia families.