NBA starts review of policies after gambling-related arrests of Rozier, Billups

Miami Heat guard Terry Rozier (2) looks on during the second half of an NBA basketball game against the Washington Wizards, Sunday, March 31, 2024, in Washington. (AP Photo/Nick Wass, File)

The NBA, in reaction to the arrests of Miami guard Terry Rozier and Portland coach Chauncey Billups last week for their alleged role in gambling schemes, has started a review of how the league can protect not just the integrity of the game but its players and coaches as well.

The league made those revelations in a memo sent to all 30 teams, a copy of which was obtained by The Associated Press.

“Given the spread of legal betting to the majority of U.S. states, the recurrence of integrity issues across sports, and the emergence of novel betting formats and markets, this is an opportune time to carefully reassess how sports betting should be regulated and how sports leagues can best protect themselves, their players, and their fans,” read the memo, sent by the NBA’s legal department.

Meanwhile, the quest for answers has reached lawmakers in Washington with the Senate on Monday following a request from a House committee last week in asking the NBA for information.

Sen. Ted Cruz, the Republican chairman of the Commerce Committee, and Sen. Maria Cantwell, the top Democrat on that panel, want information “about how the NBA investigated and handled these allegations as well as what steps the Association is taking to maintain the public’s trust.”

Their specific questions revolve around why the league’s probe of Rozier and the events surrounding a March 23, 2023 game when he was with the Charlotte Hornets.

“This Committee needs to understand the specifics of the NBA’s investigation and why Rozier was cleared to continue playing basketball,” Cruz and Cantwell wrote. “This is a matter of Congressional concern. The integrity of NBA games must be trustworthy and free from the influence of organized crime or gambling-related activity. Sports betting scandals like this one may lead the American public to assume that all sports are corrupt.”

They asked Commissioner Adam Silver to provide answers by Nov. 10.

Two indictments were unsealed last week and nearly three dozen people -- most notably, Billups and Rozier -- were arrested by federal officials.

Rozier was arrested because federal officials allege he conspired with associates to help them win bets based on his statistical performance in that March 2023 game. The charges are similar to what former Toronto player Jontay Porter faced before he was banned from the league by Silver in 2024.

Sportsbooks detected unusual patterns of wagers on the Charlotte game in question -- prop bets involving Rozier were flagged and immediately brought to the NBA’s attention -- and the league probed the matter but did not find enough evidence to conclude that Rozier broke any rules.

“While the unusual betting on Terry Rozier’s `unders’ in the March 2023 game was detected in real time because the bets were placed legally, we believe there is more that can be done from a legal/regulatory perspective to protect the integrity of the NBA and our affiliated leagues,” the league told its teams. “In particular, proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”

Monday’s moves comes on the heels of several developments last week, including the NFL reminding players of its gambling policy, MLB Commissioner Rob Manfred saying that baseball is moving “as fast as we can” on a probe of two players in that sport, and a Congressional committee asking Silver for a briefing by the end of this week to discuss topics including how “gaps, if any, in existing regulations that allow illegal betting schemes to occur.” Silver has said many times he would prefer federal regulation on sports betting instead of the current state-by-state approach.

It was not clear Monday if Silver would appear before the Committee on Energy and Commerce, which requested the briefing in a letter signed by six members of Congress.

Among the things the league said Monday it will take a look at: injury reports. The league publishes an injury report every hour, and teams are required to disclose statuses of players within certain windows of time before their next game. The NBA added the injury report several years ago in the interest of transparency.

The injury statuses can be used by bettors to decide which wagers to make -- and if gamblers get that information before the rest of the public, it’s tantamount to insider trading. Former NBA player Damon Jones now faces charges because officials said he tipped off bettors about the health status of two Los Angeles Lakers players. The details in that indictment clearly show that Jones was discussing the availability of LeBron James and former Lakers center Anthony Davis with bettors before their statuses for certain games was known publicly. There is no indication that James or Davis had any knowledge of what Jones was alleged to be doing.

There were other examples of such tipping with other clubs, federal officials said.

“With sports betting now occupying such a significant part of the current sports landscape, every effort must be made to ensure that players, coaches, and other NBA personnel are fully aware of the dire risks that gambling can impose upon their careers and livelihoods; that our injury disclosure rules are appropriate; and that players are protected from harassment from bettors,” the memo said.

The league also said it is seeking input from teams, if they have any ideas on how to best proceed going forward.

Tim Reynolds, The Associated Press