The Portland Trail Blazers were set back with a shocking loss of head coach Chauncy Billups just at the start of their season when FBI Director Kash Patel and other law enforcement officials announced a grand jury indictment in illegal gambling schemes. Director Patel stated that the investigation extended into nine states with victims losing more than $7.1 million. Since the majority of illegal games were hosted in New York, the Grand Jury of the Eastern District of New York filed the indictments for 31 defendants.

Billups, the only Oregon-tied defendant, was charged with several counts of fraud involving fixed illegal poker games tied to three organized crime families of the La Cosa Nostra since April 2019. Billups was indicted on serving as a “face card” to draw in players, as well as being a member of the cheating teams that intentionally defrauded victims.

The U.S. District Court indictment names the organized crime families identified within the La Cosa Nostra in the Grand Jury indictment as members of the Bonanno, Gambino, Genovese, and to a lesser degree, Lucchese, families.

The Grand Jury alleges that Billups was one of the defendants that participated in “rigged games” in Las Vegas, Nevada, and other cities. The indictment alleges that Chauncy and others were part of the “Cheating Teams” which defrauded victims out of at least $50,00. Chauncy has denied the charges.

In an October 27, 2025, letter to NBA Commissioner Adam Silver, Senators Ted Cruz (R-TX) and Maria Cantwell (D-WA) alleged detailed allegations against the actions of Billups. The letter alleges that Billups shared roster plans for a game against the Chicago Bulls in March 2023 and had even bet against his team for that game. The letter states that the scandal is of Congressional concern on the basis of the integrity of the NBA and sport. Their reasoning is backed by their authority under the standing rules of the Senate Committee on Commerce, Science and Transportation.

According to the FBI, the games were set up with cheat teams who used information from embedded players who in turn served as “operators” to share information via mobile phones to signal members of the cheat teams seated at the games, who served as “quarterback” or “driver” during the rigged games.

The defendants also used other technologies such as electronic card readers that fed information about which cards were on the table at any given hand, and even using specially marked cards that only individuals wearing specifically-designed contact lens or sunglasses could read.

The indictment sets out seven counts, covering wire fraud conspiracy, operating an illegal gambling business, money laundering and three counts based on the Hobbs Act. The Hobbs Act prohibits robbery or extortion in interstate commerce. Originally enacted in 1946, the law was used to quell organized crime, and has since been expanded to cover public corruption and other crimes.

The FBI investigation found that victims lost more that $7.1 million since 2019. Although the victims appear to have known that the games were illegal, or not sanctioned by any state authority, the FBI stated that the victims did believe they were playing in fair games.

Sports gambling continues to be a lucrative part of sports, even on the legal side. In the first quarter of 2024, New York topped the list with about $22.6 billion in revenue, based on state gaming reports. The 51 percent tax on that gaming revenue still leaves the state with a large take. For that same period, Illinois brought in around $13.9 billion, New Jersey at $12.8 billion. Sports betting is legal in 38 states.

According to the Oregon Lottery which oversees sports betting as part of its mandate, increased by 29% in 2023. Oregon launched sports betting in 2019, and shifted to DraftKings in 2022. Based on its latest report, Oregon netted more than $75 million in sports wagering alone, as listed in the 2024 report. More than $775 million was wagered that year. Sports betting is the fastest-growing segment in Oregon’s lottery and state indicators point to a continued growth in years to come.

While the state lotteries and other online gaming systems focus on average players, from low-to-middle incomes, it’s the high-stakes players who operate in a separate level. Those were the players (unnamed in the FBI’s indictment) who were targeted as “whales” for the gambling schemes. Those players were not charged in the illegal activities, as the FBI focused on the operators in the multi-state scheme.

Boyds Bets describes the term “whale” originates from casino-lingo used for high-rollers or big fish. They are players with a lot of money, who can afford to absorb huge losses. Casinos and other gambling platforms provide special treatment and loyalty programs for these players. The risk factor in sport betting attracts many players for legal and illegal gambling.

According to the American Gaming Association, illegal gambling makes up almost one-third of all gambling in the U.S. It took in an estimated $84 billion in 2024 in sports betting alone.  Slot machines and apps make up the majority of unregulated and illegal gambling machines, located in bars, restaurants and convenience stores. The greatest shift in illegal gambling is in interactive gaming, known as iGaming. It’s only legal in seven states, but has increased by 49 percent since 2022.

For players seeking more thrills under unregulated games, illegal gambling continues to provide an outlet. For the players caught up in the FBI’s arrests the rigged poker scheme, their roles were shifted to “victims” for the U.S. District Court indictment.

The individuals accused of crimes in the indictment will challenge those roles in court in the future, risking monetary and property forfeitures if they are found guilty.

By Sherry Harbert

© 2025, Foreign Interest. Photo credit, Sherry Harbert, image of Chauncy Billups, Head Coach of the Portland Trail Blazers in January 2025.