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Hiltzik: Whoever thought gambling would be good for sports?

I may be revealing a secret cherished by columnists the world over, but I admit that among the columns we relish writing the most fall into the “I told you so” genre.

Case in point: In April last year, in a column about the gambling mess ensnaring Shohei Ohtani’s then-interpreter, I warned that the pro sports leagues’ enthusiastic embrace of betting would inevitably produce a major scandal.

“It might not surface in the next months or even years,” I wrote, “but it will happen.”

Get a big bet on Milwaukee tonight.

— Damon Jones’ alleged message to gamblers after learning that LeBron James would be sitting out a Lakers-Bucks game

The calendar, as it turned out, ticked over at 19 months. Last Thursday, federal prosecutors charged National Basketball Assn. player Terry Rozier and former NBA player and assistant coach Damon Jones with fraud and money laundering in connection with a scheme to fix bets on NBA games. Portland Trail Blazers head coach Chauncey Billups was charged in a separate indictment linking him to a Mafia scheme to fix poker games; Jones was also named in that indictment.

The NBA has placed Billups and Rozier on leave. They’re both due to appear in federal court in Brooklyn over the next few weeks to enter pleas, though both have asserted their innocence.

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It may not be easy for the league to wash its hands of this mess. All the professional sports leagues spent years shunning gambling as a threat to their public image of integrity before embracing the siren call of big-time sports betting, bringing gambling companies and their ever-increasing customer base into their tents. But the NBA was ahead of the crowd.

In a 2014 op-ed, NBA Commissioner Adam Silver effectively cried “uncle” in the league’s battle against gambling.

“For more than two decades,” he wrote, “the National Basketball Association has opposed the expansion of legal sports betting, as have the other major professional sports leagues in the United States.” The leagues supported a 1992 federal law prohibiting sports betting except in grandfathered venues, such as Las Vegas.

They took a stern position against players and personnel caught betting on their games and their sports, dating to 1919 and the so-called Black Sox scandal, in which eight members of the Chicago White Sox were accused of throwing the World Series for the benefit of a gambling ring. Major League Baseball hired an austere federal judge, Kenesaw Mountain Landis, as its commissioner and gave him unchecked authority to clean up the game. He banned the eight players from baseball forever.

In recent times, Silver observed in his op-ed, the American appetite for sports betting has only risen. Accordingly, he called for legalizing the practice so it could be “brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”

(The 1992 law was overturned by the Supreme Court, and legalized sports betting spread coast to coast.)

Given the subsequent developments, one can tag Silver for his childlike innocence in counting on the government to regulate an industry collecting billions of dollars a year from millions of users while operating with a legal imprimatur.

Silver wrote that among his “most important responsibilities as commissioner of the N.B.A. is to protect the integrity of professional basketball and preserve public confidence in the league and our sport.”

When I asked the NBA if Silver has had second thoughts about his 2014 op-ed, the league replied, “We continue to believe that a legal, regulated, and monitored sports betting market is far superior to an illegal one operating underground,” and suggested that a single federal regulator would be preferable to the existing state-by-state patchwork, though the activities alleged in the federal indictments almost surely would be crimes in any state. Silver did say during a broadcast interview Friday that the case gave him “a pit in my stomach.”

The league’s ability to monitor the behavior of its own people is questionable. Consider a March 23, 2024, Charlotte Hornets game against the New Orleans Pelicans. According to the indictment, Rozier let the gambling conspirators know that he would take himself out of the game early, allowing them to profit from bets that his stats would fall short of bookmakers’ expectations.

The NBA, alerted by sports wagering companies to “aberrational behavior” involving Rozier in the game, investigated but later said it could find any “violation of NBA rules.”

The NBA can hardly claim to have been blindsided by the new indictments. Only last year, another federal gambling case erupted involving NBA games.

In that case, prosecutors alleged that a gambler named Ammar Awawdeh forced then-Toronto Raptors player Jontay Porter to take himself out of a game early. That led gamblers who knew of the arrangement to bet that his stats for the game would fall short of expectations; those insiders made more than $100,000 on their bets, the prosecutors charged.

According to text messages filed with the 2024 indictments, Awawdeh acknowledged “forcing” Porter to participate in the scheme to help clear some of his gambling debts.

Awawdeh engaged in plea negotiations in the case, but the outcome couldn’t be determined. Porter pleaded guilty to related federal fraud charges, and is scheduled to be sentenced in December. The NBA has banned Porter for life.

Awawdeh was also named in last week’s indictment over the alleged poker scam.

In recent years, the pro leagues have cozied up to the gambling industry, claiming that their interest is merely “fan engagement” — that is, keeping TV viewers in front of their sets even during blowout games.

Only 11 states bar sports gambling today. They include the customary anti-gambling holdouts Utah and Hawaii, and California, where ballot measures to legalize sports gambling were defeated in 2022. As I mentioned in 2024, the perils of this expansion are manifest.

They’ve created a new underclass of gambling addicts while largely failing to fulfill their advocates’ assurances that state-sponsored and regulated gambling would produce a new, risk-free revenue stream for state and local budgets. The outcomes of some games have come under suspicion even where no evidence of fixing has been found.

The leagues have gone beyond just tolerating gambling; they’ve made partnership and sponsorship deals with the major sports gambling companies. The two leading companies, FanDuel and DraftKings, are official corporate gambling partners of the NBA, National Football League and Major League Baseball.

During broadcasts and steaming of games, it’s common to see in-game statistical projections on-screen — what are the chances of this hitter striking out, or hitting a home run, for instance.

During the seventh inning of Game 2 Saturday, Fox flashed a projection that there was a 36% chance that Yoshinobu Yamamoto would pitch 9+ innings. (He went the distance.)

The only reason to offer such projections is to feed the appetite for in-game proposition, or “prop,” bets. These are fundamentally bookmakers’ estimates. They don’t tell ordinary viewers anything they need to know to enjoy the coming innings, but do give bettors something to chew on before putting money down on the proposition “will Yamamoto pitch a complete game?”

In-game prop bets, as it happens, are like heroin to the vulnerable, offering instant gratification (or dismay). They “may be associated with risky gambling behavior,” according to the National Council on Problem Gaming. Draftkings heavily promotes prop bets on its sportsbook web page.

In a memo issued Monday, the NBA singled out prop bets as trouble spots: “In particular,” the memo says, “proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”

The major gaming companies have rolled out new ways to keep bettors betting. Smartphone apps, for example. In the old days no one could place a legal sports bet without traveling to Las Vegas, a built-in curb on problem gambling. Today, anyone with a smartphone can place a bet, often without certifying their age or financial resources.

“The advent of smartphones in 2007 and the Supreme Court decision in 2018 opened the door to fully frictionless, 24/7 legal gambling,” problem gambling experts Jonathan D. Cohen and Isaac Rose-Berman wrote recently.

I asked FanDuel and DraftKings if they accepted any responsibility for problem gaming in the U.S. DraftKings didn’t reply. A spokesman for FanDuel told me by email that the company “takes problem gambling seriously and continually works to identify at-risk behavior … including when a customer attempts to deposit significantly more than what they typically do,” or “excessive time on site, chasing losses or signals from customer service interactions.” In those cases, the company sometimes imposes deposit limits or timeouts or can exclude the user entirely.

That brings us to the latest indictments. The feds identified seven NBA games in 2023 and 2024, including the 2023 game in which Rozier allegedly tipped confederates to his decision to bench himself.

Among the others were a 2023 Trail Blazers game in which gamblers were tipped that the team would sit its best players so it would lose, thereby acquiring a better position in the upcoming NBA draft; and two Lakers games in which Jones allegedly tipped gamblers that star LeBron James, a friend since they played together on the Cleveland Cavaliers, was hurt and wouldn’t be playing.

“Get a big bet on Milwaukee tonight,” Jones allegedly told a contact before the first game, against the Milwaukee Bucks. James sat it out and the Lakers lost. James isn’t identified by name in the indictment, but its description of his roles helped identify him. James hasn’t made a public comment about the case, but he hasn’t been accused of any wrongdoing.

Can anything stem this tide? The smart bet at this moment is “no.” There’s just too much money riding on the continued expansion of sports betting: DraftKings has more than doubled its revenue since 2022, reaching $4.8 billion last year, and nearly doubling its monthly average users to 3.7 million. FanDuel is owned by a British gambling conglomerate, so its U.S. sports revenue is difficult to parse.

That’s a lot of money to be thrown around promoting more sports gambling, making it harder for governments to regulate and for sports leagues to turn up their noses at the income. Keeping their image for integrity intact in this world of greedy and needy players and voracious gamblers is only going to get harder.

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Portland Trail Blazers coach Chauncey Billups and Miami Heat player Terry Rozier arrested

A National Basketball Association player and coach are among dozens of people charged in two investigations centred on illegal sports betting and mafia-linked poker games, the FBI has announced.

Miami Heat player Terry Rozier was among six people arrested over alleged betting irregularities, including other players who may have faked injuries.

Portland Trail Blazers coach Chauncey Billups is one of 31 people charged in a separate illegal poker game case involving former players and organised crime figures.

Rozier’s lawyer denied the allegations to CBS News, the BBC’s US news partner, saying: “Terry is not a gambler, but he is not afraid of a fight, and he looks forward to winning this fight.”

In a statement, the NBA said that Rozier and Billups are being placed on immediate leave, as the association is reviewing the federal indictments.

“We take these allegations with the utmost seriousness, and the integrity of our game remains our top priority,” the statement read.

US Attorney for the Eastern District of New York, Joseph Nocella Jr, said all defendants are innocent until proven guilty, but warned: “Your winning streak has ended. Your luck has run out.”

FBI Director Kash Patel called the arrests “extraordinary” and said there was a “coordinated takedown across 11 states”.

Prosecutors said the first case involved players and associates who allegedly used insider information to manipulate bets on major platforms.

Nocella called it “one of the most brazen sports corruption schemes since online sports betting became widely legalised”.

Seven NBA games between February 2023 and March 2024 have been identified as part of the case. Rozier is said to have been involved in one between the Charlotte Hornets and New Orleans Pelicans, when he was playing for the Hornets.

New York City Police Commissioner Jessica Tisch said that on 23 March 2023, Rozier allegedly let others close to him know that he planned to leave a game early with a supposed injury.

Using that information, conspirators allegedly placed bets that paid out tens of thousands of dollars in profits, she said.

During the game, Rozier played roughly nine minutes and scored just five points because of a sore right foot, according to the official NBA match report.

Before that game, he averaged 35 minutes of playing time and about 21 points per game.

“As the NBA season tips off, his career is already benched, not for injury but for integrity,” Tisch said.

Rozier’s lawyer James Trusty said in a statement that prosecutors “appear to be taking the word of spectacularly in-credible sources rather than relying on actual evidence of wrongdoing. Terry was cleared by the NBA and these prosecutors revived that non-case.”

Trusty said he had been representing Rozier for more than a year and said prosecutors characterised Rozier as a subject, not a target, until they informed him FBI agents were arresting the player on Thursday morning.

Former NBA player Damon Jones was also arrested.

Jones is said to have been involved in two of the identified games – when the Los Angeles Lakers met the Milwaukee Bucks in February 2023, and a January 2024 game between the Lakers and Oklahoma City Thunder.

The second case involves 31 defendants alleged to have participated in a scheme to rig illegal poker games and steal millions of dollars, backed by crime families.

The case involved 13 members and associates of the Bonanno, Genovese and Gambino crime families.

Nocella said the targeted victims were lured to play in games with former professional athletes, including Billups and Jones, in Las Vegas, Miami, Manhattan and the Hamptons.

Victims were “fleeced” out of tens or hundreds of thousands of dollars per game, he said.

He said defendants used “very sophisticated technology” like altered off-the-shelf shuffling machines that could read the cards. Some of the defendants used special contact lenses and eye glasses to read pre-marked cards, and an X-ray table that could read cards when they were face-down, he added.

Tisch said when people refused to pay, the organised crime families used threats and intimidation to get people to hand over the money.

The charges include robbery, extortion, wire fraud, bank fraud and illegal gambling.

The conspiracy cheated victims out of $7m (£5.2m), with one losing $1.8 million, officials said.

“This is only the tip of the iceberg,” Christopher Raia, the FBI assistant director of the New York field office, said, adding the FBI is working day and night to ensure members of mafia families “cannot continue to wreak havoc in our communities”.

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NBA’s Chauncey Billups, Terry Rozier arrested in gambling probe

Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier are among more than 30 people charged in connection with schemes involving illegal sports betting and rigged poker games backed by Mafia, authorities said on Thursday.

Rozier is accused in participating in an illegal sports betting scheme using private insider NBA information, officials said. Billups is charged in a separate indictment alleging a wide-ranging scheme to rig underground poker games that were backed by Mafia families, authorities said.

The indictments are related to two major cases, one involving sports betting and the second involving rigged poker games, U.S. Attorney Joseph Nocella Jr. said at a news conference with FBI Director Kash Patel. In the first case, six defendants are accused of participating in an insider sports betting conspiracy that exploited confidential information about NBA athletes and teams, Nocella said. He called it “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”

The second case involves 31 defendants in a nationwide scheme to rig illegal poker games, Nocella said. The defendants include former professional athletes accused of using technology to steal millions of dollars from victims in underground poker games in the New York area that were backed by Mafia families, he said.

In the sports betting scheme, players sometimes altered their performance or took themselves out of games early, New York Police Commissioner Jessica Tisch said. In one instance, Rozier, while playing for the Hornets, told other he was planning to leave the game early with a “supposed injury,” allowing others to place wagers that raked in thousands of dollars, Tisch said.

The indictment of Rozier and others says there are nine unnamed co-conspirators including a Florida resident who was an NBA player and an Oregon resident who was an NBA player from about 1997 to 2014 and an NBA coach since at least 2021, as well as a relative of Rozier.

Rozier and other defendants “had access to private information known by NBA players or NBA coaches” that was likely to affect the outcome of games or players’ performances and provided that information to other co-conspirators in exchange for either a flat fee or a share of betting profits, the indictment says.

The NBA had no immediate comment. The league has investigated Rozier previously and still is looking into the actions of former Detroit player Malik Beasley, one of the sources told the AP.

Rozier was in uniform as the Heat played the Magic in Orlando, Florida, in the season opener for both teams on Wednesday evening, though he did not play in the game. He was taken into custody in Orlando early Thursday morning. The team didn’t immediately comment on the arrest.

A message was left with Rozier’s lawyer, Jim Trusty, on Thursday. Trusty previously told ESPN that Rozier was told that an initial investigation determined he did nothing wrong after he met with NBA and FBI officials in 2023, the sports network reported.

A message seeking comment was left with Billups on Thursday morning.

The case was brought by the U.S. attorney’s office in Brooklyn that previously prosecuted ex-NBA player Jontay Porter. The former Toronto Raptors center pleaded guilty to charges that he withdrew early from games, claiming illness or injury, so that those in the know could win big by betting on him to underperform expectations.

Billups was inducted into the Basketball Hall of Fame last year. The five-time All-Star and three-time All-NBA point guard led the Detroit Pistons to their third league title in 2004 as NBA Finals MVP. Boston drafted the former Colorado star with the No. 3 pick overall in 1997. The player known as Mr. Big Shot also played for Toronto, Denver, Minnesota, the New York Knicks and the Los Angeles Clippers. Billups won the Joe Dumars Trophy, the NBA’s sportsmanship award, in 2009 while playing for his hometown Denver Nuggets.

The 49-year-old Billups is in his fifth season as Portland’s coach, compiling a 117-212 record. The Trail Blazers opened the season Wednesday night at home with a 118-114 loss to Minnesota.

A game involving Rozier that has been in question was played on March 23, 2023, a matchup between the Hornets and the New Orleans Pelicans. Rozier played the first 9 minutes and 36 seconds of that game — and not only did not return that night, citing a foot issue, but did not play again that season. Charlotte had eight games remaining and was not in playoff contention, so it did not seem particularly unusual that Rozier was shut down for the season’s final games.

In that March 23 game, Rozier finished with five points, four rebounds and two assists in that opening period — a productive quarter but well below his usual total output for a full game.

Posts still online from March 23, 2023, show that some bettors were furious with sportsbooks that evening when it became evident that Rozier was not going to return to the Charlotte-New Orleans game after the first quarter, with many turning to social media to say that something “shady” had gone on regarding the prop bets involving his stats for that night.

A prop is a type of wager that allows gamblers to bet on whether a player will exceed a certain statistical number, such as whether the player will finish over or under a certain total of points, rebounds, assists and more.

Richer, Reynolds and Marcelo write for the Associated Press. Durkin Richer reported from Washington, and Reynolds reported from Miami. Associated Press reporters David Collins in Hartford, Conn., and Larry Lage in Detroit contributed.

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