Operation Royal Flush: The NBA Gambling Takedown

FBI and Federal Prosecutors Target Coaches, Players and Mafia Members in Alleged NBA Gambling Scandal 

According to reports, the Federal Bureau of Investigation (FBI) and federal prosecutors in New York are in the process of executing a large-scale takedown targeting current and former NBA players and coaches as well as members of the Bonanno, Gambino, Genovese, and Lucchese mafia families. FBI Director Kash Patel announced the takedown at a press conference in Brooklyn on October 23, 2025, stating that federal authorities are targeting tens of millions of dollars in fraud perpetrated through alleged illegal sports betting schemes and “rigged illegal poker games.”

While we are still continuing to learn about the scope of the investigation and the charges that are forthcoming, so far we know that more than 30 individuals have already been arrested. These individuals include Portland Trail Blazers coach and former Detroit Pistons star Chauncey Billups and current Miami Heat guard Terry Rozier. Reports indicate that Billips was arrested in Oregon while Rozier was arrested in Florida, and it appears that arrests have been made in approximately a dozen states from coast to coast. 

What is the FBI Investigating?

Currently, it appears that the FBI’s investigation focuses on two separate alleged illegal sports betting and gambling operations involving current and former NBA players and coaches. The FBI is calling the takedown “Operation Royal Flush,” and it reportedly involves agents from Homeland Security Investigations (HSI), the New York Police Department (NYPD), and the New York Waterfront Commission (NYWC) as well. 

So far, the publicized allegations stemming from the takedown include:

Fraudulent Betting Schemes Involving NBA Games 

As reported by the New York Times, NBA player Terry Rozier is one of multiple individuals facing allegations related to an alleged fraudulent betting scheme involving NBA games. Prosecutors are accusing players and other individuals of using nonpublic information about players sitting out NBA games or leaving games early in order to place and win fraudulent bets. 

The New York Times and other publications also report that Rozier is being accused of leaving at least one game early and notifying other targeted individuals in advance, “so that they could bet on the game and make hundreds of thousands of dollars that they later split with [Rozier].” Other players are apparently being accused of leaving games with “supposed injuries” to facilitate fraudulent betting as well. 

At present, it appears that the sportsbooks involved in facilitating bets in connection with the alleged scheme are being treated as victims rather than co-conspirators. Reports indicate that no betting companies are currently being accused of knowingly participating in fixing bets or taking advantage of the users of their platforms. 

“Rigged Illegal Poker Games” Involving NBA Players and Coaches 

Reports indicate that Portland Trail Blazers coach Chauncey Billups is one of several individuals facing prosecution for their alleged role in an organized scheme involving “rigged illegal poker games” in the Hamptons, Las Vegas, Manhattan, Miami, and other locations. The New York Times cites U.S. Attorney Joseph Nocella Jr. of the Eastern District of New York as alleging: 

“Mr. Billups and another former player and coach, Damon Jones, participated in the other scheme, involving rigged illegal poker games that were set up by organized crime families — the Bonano, Gambino, Lucchese and Genovese families — who would take cuts of the profits and use force to go after debtors.”

The Associated Press (AP) has provided additional details on the allegations against Billups and others, writing that, “[t]he games were [allegedly] rigged through sophisticated cheating technology, such as altered card shuffling machines, hidden cameras in poker chip trays, special sunglasses and even X-ray equipment built into the table to read the cards of unsuspecting players.” The AP also reports that the mafia families targeted in the takedown allegedly, “used extortion and violence to make sure [victims of the alleged gambling scheme] paid their gambling debts.”

According to Newsweek, New York City Police Commissioner Jessica Tisch has confirmed that members of these four mafia families have been named in the federal indictment. Newsweek quotes Tisch as stating, “[i]nvestigators uncovered a long-running scheme in which members and associates of several well-known organized crime families rigged high-stakes poker games across the country.” 

As the publication also reports, “Tisch called the joint indictment ‘extraordinarily rare,’ highlighting the depth and sophistication of the alleged operation.”

What Charges are Prosecutors Filing in New York?

The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York. Charges filed in the case as of October 23, 2025 reportedly include: 

Extortion

Extortion is a federal criminal offense under 18 U.S.C. Section 873. Title 18 of the U.S. Code also separately criminalizes conducting interstate communications for purposes of extortion and receiving the proceeds of extortion. Each of these are separate criminal offenses, and the breadth of the prohibitions under Title 18 allow federal prosecutors to target individuals involved in essentially all facets of an alleged extortion operation. 

Illegal Gambling Business 

Under 18 U.S.C. Section 1955, it is a federal criminal offense to finance, manage, supervise, direct, or own all or any part of an illegal gambling business. Under federal law, an “illegal gambling business” is defined as one that: (i) violates state or local law; (ii) involves five or more individuals; and, (iii) “has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.”

Money Laundering

Money laundering under 18 U.S.C. Section 1956 is a common charge in all types of federal cases involving allegations of illegal gambling and other financial crimes. Similar to an illegal gambling business, any individual involved in any aspect of an alleged money laundering operation can face prosecution and substantial penalties.

Robbery 

While robbery is often prosecuted as a state-level offense, it can also be prosecuted under federal law. In this case, it appears that the U.S. Attorney’s Office for the Eastern District of New York is pursuing federal robbery charges in relation to the allegations that NBA players, NBA coaches, and mafia family members and associates defrauded their alleged victims out of millions of dollars by fixing sports bets and operating illegal poker games. 

Wire Fraud

Wire fraud charges are extremely common in federal gambling and financial crime cases. Under the federal wire fraud statute (18 U.S.C. Section 1343), participating in phone or Internet communications in relation to any actual or proposed fraud scheme carries a six-figure fine and up to 20 years of federal imprisonment.

Conspiracy Charges 

Federal prosecutors appear to be pursuing conspiracy charges against many of the individuals targeted in the NBA gambling takedown as well. Similar to the federal wire fraud statute, the federal conspiracy statute is extremely broad. It allows federal prosecutors to target individuals who are only tangentially involved in illegal sports betting and gambling enterprises—and these individuals can face the same penalties as those who were directly involved in defrauding victims. The conspiracy charges filed to date appear to include: 

• Conspiracy to commit extortion
• Conspiracy to commit money laundering
• Conspiracy to commit robbery
• Conspiracy to commit wire fraud
• Conspiracy to operate an illegal gambling business

What Are the Risks for the Players, Coaches, and Other Individuals Targeted in the NBA Gambling Takedown?

Depending on the specific charges filed against them, players, coaches, and other individuals targeted in the NBA gambling takedown (coined “Operation Royal flush”) may be facing anywhere from several years to several decades of federal imprisonment under the various federal statutes discussed above. These statutes also impose substantial fines—fines which could easily total in the millions of dollars in each individual case. 

Prosecutors are seeking to impose substantial bail conditions as well. All together, those targeted in the federal government’s Operation Royal Flush are facing severe immediate and long-term consequences—not to mention the reputational and professional career consequences for the NBA players and coaches involved.

About Oberheiden P.C.’s Federal Criminal Defense Team

Oberheiden P.C. is a federal criminal defense law firm that focuses on representing clients in high-stakes and high-profile federal cases. The firm’s defense team includes former U.S. Attorneys and Assistant U.S. Attorneys who have extensive experience on both sides of large-scale federal indictments and trials. 

The firm’s defense team also includes former federal agents with the FBI and other federal law enforcement agencies. Serving as defense consultants, these individuals provide critical insights for anticipating and responding to federal agents’ tactics during ongoing investigations. 

Contact the Federal Defense Lawyers at Oberheiden P.C. 

Our firm’s career federal defense attorneys and former federal prosecutors are available to represent NBA players, NBA coaches, and other individuals targeted in the federal government’s Operation Royal Flush. This includes individuals who are currently facing charges as well as those who remain under investigation or who may be at risk of facing an investigation in the future. If you would like to speak with one of our senior attorneys, we can arrange a confidential consultation today. Call us at 888-680-1745 or tell us how we can reach you online to speak with an attorney as soon as possible.