On October 23, several current and former NBA players were arrested for illegal sports betting and mafia-linked poker games. In what is actually two separate cases, the FBI cracks down on NBA players using insider information or their celebrity status to make money.
U.S. federal laws criminalize attempts at defrauding others through online platforms, even for those who do not personally carry it out. Breaking this law can result in charges of wire fraud conspiracy and money laundering conspiracy, which can carry lengthy prison sentences. In the first case, the FBI alleges that Eric Earnest, Marves Fairley, Shane Hennen, Damon Jones, Deniro Laster, and Terry Rozier all violated those laws by betting on insider information. In the press release by the U.S. Attorney’s Office, Eastern District of New York, they detailed who was involved in betting on specific games, what insider information was given out, and who that information was given to.
Arguably the most interesting example they provide is of a Charlotte Hornets vs. New Orleans Pelicans on March 23, 2023. The FBI alleges Terry Rozier, an active player for the Hornets at the time, told a friend he was going to leave the game early due to an injury so that his friend could bet on Rozier playing worse than usual. His friend won tens of thousands of dollars and split it with Rozier.
What makes this interesting is that the NBA already investigated this game shortly afterward. The flood of money in one specific game for an unlikely bet raised red flags for the NBA, but ultimately, they didn’t find any evidence of wrongdoing and let Rozier play.
The players and everyone involved are assumed innocent until proven guilty, but it’s still concerning that the NBA didn’t find anything. It raises the issue of whether or not the NBA is actually effective in investigating claims of wrongdoing. With sports betting becoming more popular and access to the internet making it easy to share information, one could expect that illegal insider betting is only going to increase. So if the NBA isn’t well-equipped to handle this there could be a lot more betting scandals and criminal cases against players.
ESPN reporter said, “But as this indictment shows, the league might have to reexamine and further tighten its existing protocols.”
Other than that game, the other games mentioned were Portland Trail Blazers Game vs. Chicago Bulls on March 24, 2023: Orlando Magic vs. Cleveland Cavaliers on April 6, 2023: Los Angeles Lakers games on February 9, 2023, and January 15, 2024, and finally Toronto Raptors games on January 26, 2024, and March 20, 2024.
All of these games, allegedly, had a coach or player tell someone about lineup decisions, medical information, and/or a planned ‘injury’. The associates all went on to place bets, and in some instances, sell that information to gamblers, and make tens of thousands of dollars. They went into gambling with an unfair advantage, swindling people out of their money.
“Rigging a professional basketball game for personal profit is as immoral as it is illegal… The fact that some players altered their performance or took themselves out of games to ensure these bets paid out is an offense to every player and fan.” – NYPD Commissioner Jessica Tisch
Now what about the mafia-linked poker games?
This case is bigger with 31 defendants, 13 of whom are linked to La Cosa Nostra, a mafia. The basic setup was as follows: the mafia set up highly rigged poker games using advanced technology and communications, several NBA players and coaches used their influences to bring people in to play the games, and then they would cheat people out of their money.
These weren’t small poker games, either. The BBC reported that overall, they made 7 million dollars, with ESPN saying that one person lost over 1.8 million dollars.
This case is still developing; there hasn’t been an actual court date for it yet. But as the case plays out in the courtroom, there will probably be pressure to change the rules on the basketball court. The NBA should be holding its teams and everyone involved to the highest standard around sports betting, and it seems like they have failed to do so. These are professional athletes making, on average, 11 million a year; there is no need for them to engage in illegal actions to make just a little bit more.
