Chauncey Billups, Damon Jones, and Terry Rozier Arrested as Part of a Wide-Ranging, Two-Pronged Federal Illegal Gambling Investigation
Three people with NBA connections--Hall of Fame player/Portland coach Chauncey Billups, former player Damon Jones, and current player Terry Rozier--have been arrested by the FBI in connection with a widespread, years-long, two-pronged probe into illegal gambling that allegedly involved multiple Mafia families, including Bonanno, Gambino, Genovese, and Lucchese. The NBA placed Billups and Rozier on leave. Tiago Splitter will be Portland's coach until further notice. Billups, Jones, Rozier, and the other people who have been arrested and charged are innocent until proven guilty, but it is important to understand what is being alleged and the wider implications if the allegations are true.
One prong of the allegations is that the Mafia paid Billups and Jones to act as "face cards" to lure wealthy individuals to high-stakes poker games that were rigged with elaborate, sophisticated technology. This allegation does not appear to have a wider implication for the NBA; if Billups and Jones are guilty, then their NBA careers are over and they will face legal consequences, but their alleged activities had no connection to the NBA beyond the fact that being associated with the NBA made Billups and Jones wealthy enough and well known enough to be useful for the Mafia.
The second prong of the allegations is that the Mafia paid Jones and Rozier to provide insider information for use on wagering. The second prong is connected with the Jontay Porter matter. The NBA banned Jontay Porter for life in 2024 after he pleaded guilty to prematurely leaving two NBA games so that "under" prop bets would win. Porter is the first NBA player banned for violating gambling rules since Jack Molinas, who the NBA banned for his role in the infamous point shaving scandal that almost destroyed college basketball. Molinas was selected to play in the 1954 NBA All-Star Game, but was replaced by Andy Phillip and Molinas never played again in the NBA.
In 2007, former NBA referee Tim Donaghy pleaded guilty to two felony charges pertaining to wire fraud and transmitting wagers related to games that he officiated. Despite widespread speculation, in depth investigations by both the federal government and the NBA produced no evidence that Donaghy point shaved or fixed games. In my recap of the Donaghy scandal, I warned about the dangers of legalized gambling:
...the advent of widespread, legalized betting on NBA games opens up the potential for a large number of problems; as the ESPN writer noted, citing some research done on this issue, the more money that is added to this situation the greater the likelihood for wrongdoing and scandal. Just look at the recent Anthony Davis melodrama; is he going to play, is he not going to play, is he going to play hard, is the team going to play him in the fourth quarter--there are numerous ways for one or more unscrupulous parties to manipulate the point spreads for New Orleans' Pelicans' games. Then you have the issue of rest (or "load management," the new catchphrase for sitting out otherwise healthy players), not to mention the issue of tanking. What if someone is able to get the inside scoop about which stars are going to rest for which games, or which teams decided to tank 10 games before the general public could tell that those teams are tanking? The NBA's recent embrace of widespread legalized gambling is fraught with peril.
The Porter case and the allegations against Jones and Rozier are exactly the type of situations that I warned about. Legalized gambling is a major threat not just to the NBA but to professional (and college) sports in general, as Jimmy "the Greek" Snyder noted decades ago:
Gambling should be made difficult for the average man. It should be something he budgets to do once or twice a year. Vegas was best when it was hardest to reach.
You see, it isn't the two or three percent, the house edge, that beats you. Otherwise, people would only lose two or three percent, and so what? It's the psychology. A guy goes to a casino. He wins $500, he's ecstatic. He goes home, buys his wife a present, springs for a night out. Fine. Now he goes back. This time he loses $500. O.K., altogether he's even. But does he quit $500 down the way he did $500 up? No. He takes another $500 out of the bank. And now he's pressing, so he blows that and borrows $500. Now he's out $1,500, and this is a guy who only makes 20 to 25 grand a year. He goes home, gets into his wife's checking account.
This is what happens when gambling is too accessible. Everybody gets hurt but the casino. The guy can't buy the new summer suit or the new shoes for his wife. He lets the tune-up go. The stores are hurt, the restaurant, the gas station. This is the kind of stuff you'll start to see soon at Atlantic City.
And if they legalized sports betting, the little guy would be just as dead. We'd find a way to beat you. Right now, if we—me, anybody—tried to bet more than $50,000 on any game, we'd have a hard time. And when you only got $50 riding, you can't pay enough to fix a game. Put a pencil to it. But with legalized gambling, there'd be so much money bet you could get down a million or more on one game. So now it's worth it to pay for a fix, isn't it? And that's easy. You don't need the quarterback. Just gimme the center. Gimme the referee. All I'd need is one offside at the right time. You don't even need to get a guy to throw it for you. Suppose we just pay a big star $50,000 to stay home with the flu? Nobody ever thought of that before, did they?
I don't buy the argument that behavior and morality cannot be legislated and that people simply have to be responsible for their decisions; gambling has been proven to be addictive, so making an addictive activity easily accessible to the majority of the population will inevitably lead not only to scandals but also to a public health crisis, even if the ramifications of that public health crisis are not immediately apparent. A lot of people are losing a lot of money that they cannot afford to lose and that they would not be losing if gambling were not so widely accessible, and this is going to destroy families. Ultimately, we will all pay for this looming public health crisis, both financially and emotionally as the damage ripples throughout society.
I also don't buy the argument that widespread legalized gambling makes gambling easier to monitor and regulate; in contrast, and as Snyder noted, widespread legalized gambling incentivizes cheating while also making cheating harder to detect. In addition to a public health crisis compounded by honest gamblers losing money because of point shaving and other shenanigans, we have already seen and heard about threats made against athletes by gamblers who lost money because of how well (or how poorly) athletes performed. Will it take someone injuring or killing an athlete over a wager for society to understand the dangers?
I am not suggesting that all wagering should be banned, but I think that wagering should be much more restricted than it is, and I think that sports leagues and their media partners should not be in the business of promoting wagering. Of course, the reforms that I am proposing are unlikely to happen because the leagues and their media partners are making a lot of money off of this misery and they will not voluntarily give up that money.
Labels: Chauncey Billups, Damon Jones, FBI, gambling, Jimmy "The Greek" Snyder, NBA, Terry Rozier, Tim Donaghy
posted by David Friedman @ 8:52 PM
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