A massive federal gambling investigation has sent shockwaves through the NBA, leading to the arrests of a head coach, a current player, and a longtime confidant of LeBron James. While the basketball superstar himself is not accused of any wrongdoing, the scandal hits remarkably close to home, alleging that his former teammate and unofficial coach, Damon Jones, sold confidential information about James’s injury status to sports bettors. The case, which prosecutors are calling an “insider trading saga for the NBA,” raises serious questions about the integrity of the game in an era of widespread legalized betting.
The scandal erupted when federal authorities unsealed two separate but connected indictments, the result of a years-long investigation spanning 11 states. In total, 34 people were arrested, including Portland Trail Blazers coach Chauncey Billups, Miami Heat guard Terry Rozier, and former NBA player Damon Jones. The allegations outline two major schemes: “Operation Nothing But Bet,” an insider sports betting ring targeting NBA games, and “Operation Royal Flush,” a sophisticated, mob-backed plot to rig high-stakes poker games. For fans, the most startling revelation was how deep the insider information went, allegedly leveraging the private medical details of the league’s biggest star.
The LeBron James Connection and a Brazen Betting Tip
The heart of the scandal involving LeBron James revolves around his former teammate and assistant coach, Damon Jones. According to the federal indictment, Jones used his insider access to the Los Angeles Lakers to obtain and sell non-public injury information. The most direct example occurred on February 9, 2023, before a Lakers game against the Milwaukee Bucks. That morning, Jones allegedly sent a text message to a co-conspirator, telling him to “Get a big bet on Milwaukee tonight before the information is out!” The confidential information was that LeBron James, identified in court documents as “Player 3,” would be sitting out the game with an injury.
At the time Jones sent this text, James had not yet been listed on the NBA’s official injury report, giving the bettors a significant advantage. The bettors acted on this tip, wagering on the Bucks with the knowledge that the Lakers would be without their best player. That night, James indeed missed the game due to a sore left ankle, and the Bucks defeated the Lakers 115-106. A source close to James has confirmed that the superstar was unaware his injury information was being shared for betting purposes and that he has not been accused of any wrongdoing.
Damon Jones, a friend and former teammate of LeBron James, is alleged to have traded non-public info on a Lakers star missing a 2023 Bucks-Lakers game.
James was the only Lakers player to miss that matchup.
🔗: https://t.co/56mc7ydpvr pic.twitter.com/d2qggUZ0t2
— The Athletic (@TheAthletic) October 23, 2025
Jones’s alleged information peddling didn’t stop with LeBron. The indictment also details a tip about another Lakers star, Anthony Davis, before a game on January 15, 2024. Jones reportedly told a co-defendant that he had learned from a team trainer that Davis was injured and would play limited minutes. This information led to a $100,000 bet being placed against the Lakers. However, this tip backfired. Davis played to his usual standard, the Lakers won the game, and the bettor allegedly asked Jones to return the $2,500 he had paid for the faulty inside information.
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A Wider Web of Corruption Within the League
The scandal extends far beyond the leaks about Lakers stars. The other individuals arrested highlight a broader corruption issue within the league’s ecosystem. Miami Heat guard Terry Rozier is accused of participating in a scheme where he intentionally removed himself from a game on March 23, 2023, while he was with the Charlotte Hornets. He allegedly told a childhood friend he would leave the game early with a supposed injury, allowing associates to place prop bets knowing he wouldn’t accumulate statistics. Nearly $260,000 was wagered on his performance before he exited the game after just nine minutes.
In a separate indictment related to rigged poker games, Hall of Fame coach Chauncey Billups was arrested. He and Damon Jones are accused of acting as “Face Cards,” using their celebrity status to lure wealthy victims into underground poker games that were rigged with sophisticated technology. Prosecutors allege the games used shuffling machines that could read cards, chip trays with hidden cameras, and even an X-ray table. This scheme, which involved four major New York Mafia families, allegedly defrauded victims of at least $7 million.
The NBA has placed both Chauncey Billups and Terry Rozier on immediate leave, stating that the integrity of the game is its “top priority.” For LeBron James, the situation is a personal betrayal by a friend and former teammate, demonstrating how even those on the periphery of the sport can exploit their access. As the legal process unfolds, this sweeping investigation serves as a stark reminder of the challenges professional sports face in the gambling age.
