NBA Scandal Shortens Odds of Federal Sports Betting Regulatory Intervention
Posted on: October 27, 2025, 09:18h.
Last updated on: October 27, 2025, 10:16h.
- The NBA sports betting and gambling scandal could prompt Congress to intervene
- Some federal lawmakers believe Congress should implement sports gambling regulations
- The gaming industry says it quickly detected the suspicious betting activity
Last week’s FBI allegations that several current and former NBA players and coaches have allegedly participated in two separate illegal gambling schemes, with New York crime families involved, rocked the sports and sports betting worlds. It’s also renewing calls for Congress to intervene in the already heavily regulated sports betting and gambling industries.
The FBI believes Miami Heat star Terry Rozier, Portland Trail Blazers head coach Chauncey Billups, and former player Damon Jones participated in a rogue sports betting scheme that dealt with providing outside influences with inside information regarding the status of key players. Jones allegedly sold nonpublicly available information about the status of LeBron James, while Rozier is alleged to have faked injuries and thrown games.
Billups is linked to the sports betting scandal. The 2004 NBA Champion and NBA Finals MVP, who was inducted into the Basketball Hall of Fame in 2004, is additionally accused of participating in rigged poker games in cahoots with the mob.
Billups was a so-called “face card” for the games, attracting high-net-worth individuals to the games that ran in various locations in New York City, the Hamptons, and throughout the United States.
Federal Oversight
The allegations that the two federal indictments brought against 31 defendants have heightened calls for federal government oversight of sports betting. Though the sportsbooks that took much of the action on the games that Rozier allegedly threw quickly identified the suspicious activity and notified the NBA, some lawmakers believe Congress must act to rein in the industry.
At focus are prop bets, whose outcome can typically be influenced by a single player. Rozier allegedly faked injuries to take himself out of games, which easily allowed the under of his prop bet over/under to prevail. Prop bets can involve a variety of statistics, from how many points a player will score to total rebounds and assists.
The temptation for athletes, seasoned coaches, and professional officials to adjust performances is real. Sadly, scandals are becoming more and more frequent,” said Sen. Dick Durbin (D-IL). “Congress, states, and sports leagues must all work to maintain the integrity of sports and prevent future sports betting scandals.”
Rep. Michael Baumgartner (R-WA) has introduced legislation to ban player prop bets in college sports. He believes student-athletes are more likely to be swayed by an outside influence in exchange for a payment.
“The world of prop bets has opened up a lot of potential for illegal activity and issues that can threaten games,” Baumgartner told The Washington Post. Baumgartner said he isn’t advocating for a player prop ban in pro sports, despite the federal allegations against the NBA trio.
Industry Did its Job
The NBA scandal is unquestionably a black eye on sports betting, but the legal gaming industry maintains that it did its part in promptly detecting the suspicious betting activity surrounding Rozier.
A subsequent NBA investigation, however, didn’t turn up concrete evidence for what NBA Commissioner Adam Silver called “aberrational behavior.”
“It is important to recognize that the regulated legal market delivers transparency, oversight, and collaboration with authorities that assist in bringing these bad actors to light,” the American Gaming Industry said in a release.
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