Mafia, illegal poker games and NBA players: The gambling racket in the US, explained

The world of basketball is in shock. On Thursday (October 23), the US authorities arrested 30 people, including, a star player and a coach in the National Basketball Association (NBA), for alleged illegal sports betting.

According to Federal Bureau of Investigation Director Kash Patel, the “insider trading saga for the NBA” exposed two intertwined criminal operations that generated tens of millions of dollars through fraud, money laundering, extortion, and gambling-related offences.

Patel added that the cases don’t just pertain to NBA players, but also multiple New York mafia families, millions in cash and even an x-ray poker table that can read cards face down.

Here’s what we know about the entire saga.

What has exactly happened?

On Thursday, the US authorities released two separate but related indictments. One contains accusations that people compromised NBA matches, while the other alleges an elaborate scheme to manipulate illegal, high-stakes poker games.

In the insider betting matter, it was alleged that those involved used insider information about injuries and starting line-ups to make fraudulent bets. Prosecutors say they encouraged others also to make fraudulent bets, and laundered their winnings in multiple instances between December 2022 and March 2024.

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The second case relates to underground poker games, backed by four of New York’s five historical mafia “families” — referred to collectively as La Cosa Nostra. It is alleged more than 30 involved used sophisticated technology to rig the games.

The victims (known as “fish”) were enticed to the games, held in multiple locations around the country, with a promise to play alongside high profile people (known as “face cards”). However, as US Attorney Joseph Nocella Jr said, “What the victims, the fish, didn’t know was that everybody else at the poker game, from the dealer to players, including the face cards, was in on the scam.”

Many of these ‘face cards’ at these poker games were former professional athletes, note the authorities, adding that both scheme amounted to tens of millions of dollars in theft and robbery across several years and 11 states.

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In what seems like a movie plot, authorities found that at these high-stakes poker games, sophisticated technology was used to dupe these ‘fish’.

For instance, it was found that the mafia families used ‘rigged’ shuffling machines, special contact lenses and eyeglasses to read pre-marked cards. They also used an X-ray table that could read cards that were face down. Secret cameras — built into tables and lights — also helped rig the games in favour of those organising it.

Investigators found that the shuffling machines could determine the exact order of cards after a shuffle, and who was holding what once they were dealt. That information was transmitted wirelessly to someone off-site, who would send the identity of the player with the winning hand to the phone of a player at the table, known as “the quarterback.” This “quarterback” using classic subtle signals like touching certain chips then passed the information to his fellow participants.

Authorities note that each of these games left a victim out of tens or hundreds of thousands of dollars. Moreover, a cut of the profits went to those who helped in the plot, prosecutors say, and some allegedly went to fund the mafia’s criminal enterprise.

Who’s been charged so far?

Six have been charged in the insider betting matter, including Terry Rozier, a veteran NBA player, who played for the Miami Heat most recently.

Others charged in this matter are: Damon Jones, another NBA player, who went on to become an assistant coach. Four of their friends and associates were also indicted: Eric Earnest, Marves Fairley, Shane Hennen and Deniro Laster.

They have been charged with using insider information about injuries and starting line-ups to make fraudulent bets. Prosecutors say they encouraged others to make fraudulent bets too, and laundered their winnings in multiple instances between December 2022 and March 2024. Rozier was also charged with rigging the outcome of a bet.

Jones has been accused by authorities of using his relationship with “a prominent NBA player” to get inside information, which he then sold to professional punters. Many believe that this ‘prominent NBA player may have been LeBron James, NBA’s all-time leading scorer, but he hasn’t been named in the indictment.

In the second case of illegal poker games, the NBA is once again involved as Portland Trail Blazers coach Chauncey Billups has been charged. He is charged with being a “face card” — a celebrity former athlete used to lure victims into illegal poker games.

How is the mafia involved and who are they?

The indictment notes that the illegal poker games were held by four of the five well-known crime families of New York. These are the Bonanno, Gambino, Genovese and Lucchese groups.

Court documents show that Billups as well as Jones were ‘face cards’ used to entice rich victims to the rigged poker games where they helped cheat victims of millions. In fact, one victim even lost $1.8 million.

The illegal poker games show how the US mafia continues to thrive, despite their takedown in the early 1990s.

For those who don’t know the Gambino mafia comes from Carlo Gambino. However, the group’s most infamous boss was John Gotti. Meanwhile, the Bonnano family is named after Joseph Bonnano, who is believed to be one of the longest-serving bosses in mafia history.

The Genovese family was originally known as the Luciano family, but changed its name with a new leader in the 1950s. meanwhile, the Luccheses controlled the trucking and garment industries in New York. They also wielded major influence over a number of labour unions and trade organisations.

New York City Police Commissioner Jessica Tisch said at the press conference on Thursday, “When people refused to pay because they were cheated, these defendants did what organised crime has always done: they used threats, intimidation, and violence.”

What has the NBA said so far?

Following the indictment, the NBA has stated that it has put Rozier and Billups on immediate leave.

“We are in the process of reviewing the federal indictments announced today. 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,” the NBA said in a statement.

With inputs from agencies