Just three days into the 2025–26 NBA season, the league was rocked by a scandal that no one saw coming. The FBI, led by Director Kash Patel, executed a sweeping operation across eleven states, arresting over thirty individuals in what it described as one of the most audacious sports corruption schemes since sports betting became legal nationwide. The case uncovered a network involving mafia families, tens of millions of dollars in fraud, rigged poker games, and insider trading on player statistics that would make Wall Street blush. Among those caught in the net were Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier, whose arrests stunned the basketball world.

According to federal prosecutors, the scheme revolved around two interconnected operations: “Operation Nothing But Bet,” which targeted insider sports betting, and “Operation Royal Flush,” which exposed mafia-backed poker games. The fraud wasn’t small change—tens of millions of dollars flowed through this underworld pipeline. Prosecutors named four notorious New York crime families—the Bonanno, Gambino, Genovese, and Lucchese families—as being tied to the broader network.

The scandal took an unexpected turn when LeBron James’s name surfaced—not as a suspect, but as an unknowing victim. Damon Jones, a former NBA player and LeBron’s longtime shooting coach, allegedly sold confidential health information about James to gamblers. According to investigators, Jones had access to Lakers facilities, locker rooms, and team flights, which he used to leak details about when LeBron would sit out games due to injuries. This inside information allowed gamblers to place profitable bets before the public or sportsbooks knew anything. The indictment made clear that LeBron had no knowledge of the betrayal, but his name’s involvement alone was enough to send shockwaves through the league.

Meanwhile, Terry Rozier was accused of something even more deliberate—allegedly faking an injury during a Hornets–Pelicans game in March 2023 after tipping off associates to bet on his under props. Prosecutors say he profited directly from the scheme, turning himself into what one called “a walking ATM for gamblers.” Chauncey Billups, on the other hand, was implicated on the poker side, allegedly participating in rigged high-stakes games across Las Vegas, Miami, and New York, where hidden cameras and marked cards helped cheaters steal millions from wealthy victims.

The FBI’s coordinated October 23rd raids resulted in 34 arrests, including several mafia associates. Public reaction was immediate and explosive. Within hours, #NBAGamblingScandal was trending across social media, as fans reeled from the allegations. Many called it the league’s darkest moment in decades, raising questions about how closely the NBA monitors betting activities now that gambling partnerships are a major source of league revenue.

Although LeBron was not accused of wrongdoing, his association with Damon Jones brought unwanted scrutiny. Supporters rallied to defend him, comparing the situation to Shohei Ohtani’s interpreter scandal—another case where a trusted insider betrayed an athlete. But conspiracy theories quickly emerged, with some claiming that LeBron’s outspoken criticism of NBA ownership had made him a target.

As the FBI vowed more arrests, the situation took on a life of its own in the media—and that’s where ESPN’s Stephen A. Smith entered the picture. Smith, whose complicated relationship with LeBron stretches back over a decade, seized the moment to renew his personal feud with the Lakers star.

Their conflict dates back to 2010, when Smith lambasted LeBron for “The Decision,” calling his move to Miami a betrayal of Cleveland and a blow to his character. Over the years, Smith claimed LeBron’s inner circle—particularly Maverick Carter and Rich Paul—tried to sabotage his career by blocking TV appearances and spreading rumors. The feud resurfaced in 2024 when LeBron’s son, Bronny James, was drafted by the Lakers. Smith accused the organization of nepotism, arguing that Bronny only made the roster because of his father’s influence.