Sports Betting Integrity
When federal prosecutors unsealed indictments against more than three dozen defendants on October 23, Joseph Nocella Jr. issued a stern warning to conspirators in brazen gambling schemes.
Nocella, the interim U.S. attorney for the Eastern District of New York, has deep experience in trying cases against the Mafia. In 1992, he served on the prosecutorial team that secured 54 convictions against Lucchese family crime boss Vittorio Amuso on murder and racketeering charges. Decades later, he returned to the same office to lead the prosecution in a historic illegal poker and sports betting case. Nocella’s expertise appears to be crucial in a case tied to several mob families.
Three NBA figures—Portland Trail Blazers coach Chauncey Billups, Miami Heat guard Terry Rozier and former NBA guard Damon Jones—were among those arrested in October. Although the trio has commanded most of the media attention, two other defendants—Shane Hennen and Marves Fairley—have also been linked to a multi-year probe into suspicious betting activity in college basketball.
While reports surfaced that prosecutors were poised to charge a group of defendants before the start of the college basketball season, no NCAA players were indicted before the season tipped on November 3. The point-shaving investigation could still become the most pervasive case of match manipulation in the history of the sport, according to SI.com.
These trends have percolated from the intertwined cases:
1. Congressional action: Though some viewed it as an initial overreaction, members of Congress such as U.S. Rep. Paul Tonko of New York have taken particular interest in the NBA scandal. He was already co-sponsor of the Supporting Affordability and Fairness with Every Bet Act, which aims to create a federal framework for sports wagering. In the wake of the scandal, Tonko sent a letter to the commissioners of seven major U.S. sports, including the NBA. “Claims of prioritizing integrity ring hollow when leagues have sold credibility to gambling operators, integrated betting content into broadcasts, glorified it in advertising, then failed to prevent criminal conduct from taking hold within the sport,” he wrote.
2. League cooperation: On the other side of Capitol Hill, Senators Ted Cruz and Maria Cantwell asked the NBA to provide records of every internal investigation on sports betting dating back to 2020. Separately, the House Energy and Commerce Committee petitioned NBA Commissioner Adam Silver to testify before Congress.
3. Potential NCAA rollback: In October, an NCAA committee adopted a proposal that would allow student-athletes to bet on pro sports. But weeks later, it delayed implementation after SEC Commissioner Greg Sankey voiced concerns over the rule change. The House Energy Committee also penned a letter to the NCAA saying the proposal raises questions about sports betting and the integrity of sports on the collegiate level.
4. Federal ban on college player props: Even before the scandals erupted, NCAA President Charlie Baker called for a nationwide prohibition on the bets tied to individual performance. The recent headlines could provide momentum for change on the federal level.
5. Restrictions on props featuring two-way players: Silver has previously advocated for restrictions on wagers involving players who move frequently between the NBA and NBA G-League. According to ESPN, the league has held discussions with several sportsbooks on the type of wagers that may be subject to restrictions.
6. Poker handle: The alleged links between rigged illicit poker games and organized crime could prompt a number of California high rollers to return to legal tables in Vegas. In a separate case, the 2023 murder of an Israeli poker player spawned a Los Angeles Police Department investigation into the illegal poker scene there. The new indictments in New York allege that the NBA’s Billups received a cut of the profits from a fixed game.
7. More charges against NBA players: An unindicted co-conspirator in U.S. v. Earnest, the Eastern District of New York case on sports betting, is a former NBA player. Nocella indicated that the case is ongoing, but he did not answer directly if other NBA players will be charged.
8. Scope of college investigation: While a handful of former college basketball players have been permanently banned for betting on the sport, none were indicted for point shaving as of November 1. Days before the start of the season, the NCAA told ESPN that approximately 30 current and former players were under investigation for potential sports betting infractions.
9. Interactions between leagues and integrity monitors: According to integrity sources, the relationship between some leagues and the monitoring firms hasn’t always gone smoothly. The scandals may help improve the process.
10. Smartphone bans: It may appear Big Brotherish, but restrictions preventing team employees from bringing their phones into an NBA facility could curb the dissemination of non-public information for betting purposes. Jones allegedly provided inside info on an injury to a player who fits the description of LeBron James, with whom he had a longtime relationship.
