In what federal officials are calling one of the most far-reaching corruption probes in modern sports history, the U.S. Attorney for the Eastern District of New York and the FBI have announced two overlapping indictments — one involving insider NBA betting and another tied to rigged poker games backed by New York’s most powerful Mafia families.
Operation Royal Flush and Operation Nothing But Bet
At a joint press conference, U.S. Attorney Joseph Nosella and FBI Director Kash Patel revealed the results of Operation Royal Flush and Operation Nothing But Bet. These multi-year investigations exposed a sprawling criminal enterprise connecting professional basketball insiders to organized crime.
Officials described a nationwide operation across 11 states that resulted in 34 arrests, including NBA coach Chauncey Billups, current Miami Heat guard Terry Rozier, and former player and coach Damon Jones. Prosecutors allege these men used their positions and inside access to manipulate betting outcomes and rig high-stakes poker games.
The NBA Insider Betting Case
According to the indictment, between December 2022 and March 2024, the defendants orchestrated a fraud scheme to profit from non-public NBA information — including when certain players would sit out or exit early under the guise of injuries.
Federal prosecutors say Rozier and Jones were among those who either provided or exploited confidential information. One cited example occurred in March 2023, when Rozier allegedly tipped off associates that he would leave a game early. They then placed over $200,000 in wagers on his performance unders. Rozier exited after nine minutes, and the bets paid out.
Defendants used straw bettors to avoid detection and laundered winnings through cash exchanges, wire transfers, and peer-to-peer platforms. The total financial exposure is estimated in the tens of millions.
Those charged in this case include Eric Ernest, Marz Farley, Shane Henning, Dairo Ler, Damon Jones, and Terry Rozier. All face charges of conspiracy to commit wire fraud and money laundering. The FBI characterized the operation as “the insider trading saga for the NBA.”
The Mafia-Backed Poker Ring
The second case — U.S. v. IEL — dates back to 2019 and involves a high-tech rigging of underground poker games across New York, Las Vegas, Miami, and the Hamptons.
Defendants allegedly used modified shuffling machines, hidden cameras, X-ray poker tables, and smart lenses to read cards and communicate results in real time. The so-called “quarterback” at the table received signals from an off-site operator and relayed them to co-conspirators during play.
Victims — nicknamed “fish” — were often lured to these games by the chance to play with celebrity athletes like Billups and Jones, who served as “face cards” to add legitimacy.
Federal officials confirmed involvement from four of New York’s infamous Mafia families: the Bonanno, Gambino, Genovese, and Lucchese families. These families allegedly managed game operations, enforced debts, and took cuts from winnings.
Losses exceeded $7 million, and in some cases, players who couldn’t pay were subject to threats, extortion, and robbery.
Federal Response and Next Steps
FBI Director Patel praised the operation as “historic justice at the intersection of sports and organized crime,” while acknowledging it would face political and public backlash. “It’s not popular to go after these defendants,” he said, “but justice is blind. This is insider trading for the NBA.”
Police Commissioner Jessica Tish confirmed that both the FBI and the NBA cooperated fully with the investigation and that more arrests are possible as the investigation continues.
Both cases remain active, and prosecutors urge anyone with information to contact the FBI.
