Former NBA Player Damon Jones Pleads Not Guilty to Federal Gambling and Fraud Charges

Former NBA player Damon Jones appeared in a Brooklyn federal courtroom Thursday to face multiple charges linked to an alleged gambling and fraud scheme involving rigged poker games and insider sports information. Jones, 49, entered not guilty pleas to both indictments, which stem from a sweeping federal investigation into underground betting operations.

Jones, who played 11 seasons in the NBA and later worked as an assistant coach, was among more than 30 individuals arrested last month. The case has drawn national attention due to its ties to organized crime networks and its inclusion of other basketball figures, such as Portland Trail Blazers head coach and Hall of Famer Chauncey Billups and Miami Heat guard Terry Rozier.

In court, Jones spoke little as his lawyer, Kenneth Montgomery, entered the pleas on his behalf. Montgomery later told reporters the defense team “may be engaging in plea negotiations,” signaling the potential for a resolution before trial. Jones’ next court appearance is scheduled for November 24.

Jones was released on a $200,000 bond, secured by his family’s Texas home. He is permitted to travel only within certain parts of Texas and New York City as he awaits trial.

1. Accusations of Insider Information and Rigged Games

Prosecutors allege that Jones provided nonpublic injury information to a sports bettor, helping them place wagers based on privileged data. One alleged incident involved Jones sending a text message before a February 2023 Lakers game, stating, “Get a big bet on Milwaukee tonight before the information is out,” referring to LeBron James’ undisclosed injury. At the time, James was not listed on the Lakers’ injury report, but he was later ruled out with a lower-body injury, and the Lakers went on to lose to the Milwaukee Bucks. Investigators say this exchange demonstrates that Jones used confidential team knowledge to profit from sports betting activity. In another instance, prosecutors allege that in January 2024, Jones accepted $2,500 from sports bettor Marves Fairley for a tip about Anthony Davis’ expected limited playing time. Fairley then wagered $100,000 on the Thunder to win against the Lakers — but the prediction proved false, as Davis played full minutes, scoring 27 points and collecting 15 rebounds. According to court documents, Fairley demanded a refund after losing the bet. Jones faces charges of wire fraud conspiracy and money laundering conspiracy in connection with both the insider information case and the poker operation. He has denied all wrongdoing.

2. Career and Connection to LeBron James

A native of Galveston, Texas, Damon Jones enjoyed an 11-year NBA career from 1999 to 2009, playing for 10 teams and earning over $20 million. Known for his three-point shooting and outspoken personality, Jones famously called himself “the best shooter in the world” during his playing days. Jones was a teammate of LeBron James with the Cleveland Cavaliers from 2005 to 2008 and later returned to the franchise as a shooting consultant and assistant coach. He was part of the Cavaliers’ staff when the team captured its first NBA championship in 2016 under James’ leadership. More recently, Jones worked informally with the Los Angeles Lakers during the 2022–23 season, serving as an unofficial assistant to James. His connection to the superstar has heightened public interest in the case, especially given the allegations that involve private information about James and Anthony Davis. While neither player is accused of wrongdoing, the incidents have prompted renewed scrutiny over the NBA’s internal data security and how information about player availability is managed.

3. Organized Poker Scheme and Alleged Mob Ties

Beyond the insider information charges, Jones is also accused of participating in a series of high-stakes poker games allegedly rigged using sophisticated cheating methods. Prosecutors claim the games employed modified shuffling machines, hidden cameras, special sunglasses, and even X-ray equipment built into tables to manipulate outcomes. According to court filings, Jones and other former NBA players were invited to these games to attract participants unaware of the scheme. In one instance, prosecutors allege Jones was paid $2,500 for attending a poker game in the Hamptons and instructed to fold when uncertain about his hand. Jones allegedly responded in a text message, “y’all know I know what I’m doing!!” The indictment links the poker operation to New York’s organized crime families, including the Gambino, Genovese, and Bonanno groups. Prosecutors say the families demanded a share of the proceeds from the games and used violent tactics such as extortion and assault to maintain control. Federal officials have described the investigation as part of a broader effort to dismantle illegal gambling enterprises with ties to professional sports figures. Jones remains under strict travel restrictions as the case moves toward trial.