Congress Probes NBA & MLB Sports Industry Amid $13.71B Gambling, Betting & Cheating Scams With Mafia Connections

Did your favorite sports player get injured lately? Breaking news has come out of sports playing altering performances, or injuries, for compensations like money or cash. It could have been planned for a bet! Such as a prop bet. Since the U.S. Supreme Court struck down the federal ban on sports betting in 2018, legal wagering has exploded. What is the difference between gambling and wagering?

Legal wagering refers to sports betting that is conducted through licensed, regulated operators in jurisdictions where it is explicitly permitted by law, such as state-regulated sportsbooks in the U.S. Betting, in a general sense, is any act of risking money on an uncertain outcome, and it can occur legally or illegally depending on the location and method. The key difference is that legal wagering operates under strict government oversight, including age verification, responsible gambling tools, and tax reporting, while illegal betting often happens through unlicensed bookmakers, offshore sites, or underground networks. Legal wagering contributes to state revenues through taxes and fees, whereas illegal betting avoids these contributions and often lacks consumer protections. In short, all legal wagering is betting, but not all betting is legal wagering.

The government investigation into the NFL and NBA highlights concerns over the explosive growth of legal sports betting, which generated $13.71 billion in revenue last year, particularly prop bets on individual performances that make manipulation easier.

Federal authorities, including U.S. Attorney Joseph Nocella Jr., labeled it “one of the most brazen sports corruption schemes since online sports betting became widely legalized,” while FBI Director Kash Patel highlighted its mafia connections during a major press conference announcing the arrests.

In the early years, the total amount Americans bet (known as the handle) started modestly: around $6-7 billion in 2018-2019 combined. American’s Betting surged to $21 billion in 2020, $57 billion in 2021, $93 billion in 2022, $121 billion in 2023, $148-149 billion in 2024, and over $165 billion in 2025 (with some estimates nearing $157-165 billion for full-year figures).

Over the past decade (roughly 2018-2025), cumulative legal sports bets have exceeded $600 billion, with the vast majority occurring online and driven by mobile apps in dozens of states. This growth reflects the rapid legalization in over 38 states plus D.C., turning sports betting into a mainstream activity that generated billions in gross revenue for operators (e.g., $13-16 billion annually in recent years) and substantial tax dollars for states.The boom has raised serious concerns about sports betting addiction. Problem gambling rates among sports bettors are significantly higher than in the general population—often 2-3 times greater—with studies showing 6-10% of sports bettors meeting criteria for gambling disorder, and up to 16-30% of online or fantasy sports participants exhibiting problematic behaviors. National surveys indicate that roughly 20 million American adults report at least one risky gambling behavior annually, with younger men (especially ages 18-34) at highest risk; around 10% of young men show signs of gambling problems, compared to 3% overall. Help-seeking searches for gambling addiction have risen sharply (up 23% nationally since 2018), alongside increased reports of anxiety, depression, substance use, and financial harm. While most bettors gamble responsibly, the easy access via apps has intensified risks for vulnerable groups, prompting calls for stronger prevention, education, and support resources like helplines.

The Bookies: Positives and Negatives

Tax free winnings, or broken legs?

In the underground world of illegal sports betting, bookies frequently extend credit to losing bettors by essentially loaning them the money to cover their debts, allowing the gambler to settle up later—often at the end of the week or month—while charging steep “juice” or vigorish on top of the original loss, sometimes escalating to 10% or more per week in interest that can trap players in a vicious cycle of escalating debt enforced through intimidation or violence by organized crime networks. This credit system keeps the action flowing without requiring upfront cash, but it turns casual betting into a high-stakes trap. At the same time, unlike licensed sportsbooks that must issue IRS Form W-2G reports for winnings over $600 and withhold taxes on large payouts, transactions with a street bookie are handled strictly in cash with zero paperwork or reporting requirements, enabling bettors to pocket their profits tax-free without declaring them on federal or state returns—though this evasion carries its own legal risks if discovered.

First Prison Sentence Hits NBA Gambling Scam

In January 2026, Timothy McCormack, a 38-year-old self-described gambling addict, became the first person sentenced in a major NBA illegal betting scandal when a federal judge in Brooklyn, New York—LaShann DeArcy Hall—imposed a two-year prison term on him.

McCormack had pleaded guilty to his involvement in a conspiracy that used non-public insider information from NBA players to place highly profitable bets on player performances, such as prop bets tied to points, rebounds, or early game exits, defrauding legal sports betting platforms. He admitted to betting on at least three rigged or manipulated NBA games as part of the scheme, which prosecutors described as a serious threat to the integrity of professional sports. During his sentencing hearing, McCormack expressed remorse, stating, “I’ve struggled with a gambling addiction for more than half my life.” The judge acknowledged his long-term addiction and remarked sympathetically, “I don’t believe the conduct Mr. McCormack engaged in defines him,” though she still handed down the full two-year sentence—half of the four years prosecutors had sought, but more than the no-prison-time outcome his defense had requested.

The broader scandal erupted in October 2025 with FBI arrests and indictments revealing a wide-ranging conspiracy involving current and former NBA players who allegedly provided insider tips to gamblers for profit. Key figures implicated include Miami Heat guard Terry Rozier, accused of sharing information about his own early exits from games (such as one with the Charlotte Hornets in 2023) to enable winning bets, and former Toronto Raptors player Jontay Porter, already banned for life by the NBA in a related 2024 betting case where he pleaded guilty to wire fraud conspiracy and is awaiting sentencing. The scheme reportedly generated around $1 million in illegal winnings, with some funds allegedly used to cover Porter’s gambling debts.

A related but overlapping investigation uncovered high-tech rigged poker games that lured celebrities and high-stakes players, using methods like secretly modified card-shuffling machines that scanned decks and relayed information via texts or wires to off-site accomplices, hidden cameras in poker chip trays, X-ray tables to read face-down cards, and invisible ink on cards detectable only with special lenses or glasses. Former NBA figures such as Portland Trail Blazers head coach Chauncey Billups and ex-player Damon Jones were allegedly involved, sometimes as “celebrity bait” to attract victims; in one 2019 Las Vegas game featuring Billups, participants lost at least $50,000 due to the cheating.

The entire probe spans multiple states, involves tens of millions in illicit activity across sports betting and poker, and continues to unfold with additional defendants facing charges like wire fraud, bank fraud, and conspiracy. McCormack’s sentencing marks the first incarceration in the case, underscoring federal determination to combat insider-driven gambling corruption in professional sports.

NBA Betting & Cheating

Congress is launching an investigation into major betting scandals impacting the NBA and Major League Baseball (MLB) following a series of federal charges and indictments that have raised serious concerns about the integrity of professional sports. Bipartisan leaders of the Senate Commerce Committee—Chairman Ted Cruz (R-Texas) and Ranking Member Maria Cantwell (D-Washington)—sent letters to MLB Commissioner Rob Manfred and NBA leadership demanding details on suspicious wagers, alleged game rigging, instances of manipulation, and the leagues’ measures to enforce rules and protect against corruption. The probe highlights rapid growth in sports betting since legalization, with the industry generating billions in revenue through partnerships with leagues, but also enabling vulnerabilities like prop bets on individual performances (e.g., points, rebounds, pitches, or early exits) that can be exploited.

Key cases driving the scrutiny include: in the NBA, Portland Trail Blazers head coach Chauncey Billups pleaded not guilty to charges tied to an illegal high-tech poker scheme with possible organized crime links; Miami Heat guard Terry Rozier faces arraignment on December 8, 2025, for allegedly faking a foot injury in a 2023 game to facilitate profitable bets on his underperformance; and connections to broader insider betting rings.

MLB Pitching & Pitchers

In MLB, Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase were indicted on November 9, 2025, for conspiring with bettors to deliberately throw specific pitches at set times, yielding hundreds of thousands in illicit winnings and defrauding sportsbooks while betraying the league and fans. These incidents echo historical scandals like the 1919 Black Sox affair and build on prior NBA issues, such as the lifetime ban of Jontay Porter.

Lawmakers and experts expressed alarm over eroded public trust, with Sen. Eric Schmitt (R-Mo.) stressing the need for faith in fair play among players, coaches, and referees; Cruz warning that such scandals “threaten to undermine the integrity of sports”; Cantwell calling for strong rules and compliance; and Sen. Richard Blumenthal (D-Conn.) advocating national standards to curb exploitation of vulnerable gamblers. Professor Declan Hill warned that perceived manipulation could “kill the joy of sport,” while others compared sportsbook marketing to past tobacco tactics and highlighted public health risks, including rising gambling addiction and suicide concerns. MLB Commissioner Manfred pledged full cooperation with the Senate inquiry, but the investigation’s outcomes remain uncertain amid broader calls for tighter federal oversight or state-level regulation in an era of explosive sports gambling growth.

Congress Probes NBA & MLB For Cheating & Betting Scandals After Federal Charge

Congress has launched an investigation into major betting scandals plaguing the NBA and Major League Baseball (MLB), driven by recent federal charges that exposed alleged game manipulation and insider betting schemes.

Bipartisan leaders on the Senate Commerce Committee—Chairman Ted Cruz (R-Texas) and Ranking Member Maria Cantwell (D-Wash.)—sent letters to NBA Commissioner Adam Silver and MLB Commissioner Rob Manfred demanding details on suspicious wagers, alleged rigging incidents, existing safeguards, and steps to prevent future corruption.

Lawmakers, including Cruz who warned that “these cheating scandals threaten to undermine the integrity of sports,” and experts like Penn State professor John Affleck, stress that willing athletes could influence outcomes like early exits, specific pitches, or stats, eroding fan trust and fueling conspiracy theories about rigged games.

Key cases fueling the scrutiny include the NBA scandal involving Miami Heat guard Terry Rozier (accused of benching himself in a 2023 game to profit bettors on his low stats), Portland Trail Blazers coach Chauncey Billups (pleading not guilty to charges in an illegal poker scheme with possible organized crime ties), and former player Damon Jones. In MLB, Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase were indicted on November 9, 2025, for conspiring to throw specific pitches over multiple games, netting bettors hundreds of thousands in winnings. Broader worries center on leagues’ partnerships with gambling companies, potential conflicts of interest, and the need for stronger integrity measures or even national standards. While MLB pledged full cooperation and some reforms (like capping certain bets), no firm timeline exists for congressional conclusions, and outcomes remain uncertain amid calls for balanced oversight without overreach into state-regulated gaming.