On Tuesday, NBA Commissioner Adam Silver addressed the media at the NBA Summer League in Las Vegas, a time of intense scrutiny surrounding sports integrity amid a series of gambling scandals that have ignited calls for reform across US sports.
Silver’s appearance comes as several current and former players face federal charges stemming from a significant gambling investigation in Brooklyn. While local reporters pressed him about the NBA’s expansion plans, Silver also had to confront the unsettling ramifications of ongoing investigations that could undermine the integrity of professional and collegiate athletics.
During a federal sports betting hearing in May, Senator Ted Cruz dedicated a considerable portion of his remarks to advocating for restored integrity in sports. Concurrently, New York Representative Paul Tonko has compared the crisis surrounding problem gambling in teenagers to the tobacco epidemic of the 1990s. Furthermore, Carolyn Pokorny, a former New York federal prosecutor, has proposed creating a federal sports betting commissioner with subpoena powers to oversee extensive multi-state investigations.
Silver, who supported the legalization of sports wagering ahead of the 2018 PASPA ruling, expressed his support for some elements of Pokorny’s proposal. Advocating for federal regulation in the sports betting arena, he mentioned that a sports betting czar could help guide investigations that are often outside the leagues' purview.
"I’m very pro-regulation here," Silver stated, emphasizing the need for more comprehensive governance in this sector.
Culprit Courts in Brooklyn
The epicenter of recent gambling scandals has been a federal courthouse in Brooklyn, where multiple defendants have been charged in connection with a sweeping sports betting and illegal poker investigation. Over the past year, at least five figures associated with the NBA have faced gambling-related charges in the US District Court for the Eastern District of New York. Among them, former players Damon Jones, Terry Rozier, and Chauncey Billups were arrested last October when indictments were unsealed. In a separate incident last month, Malik Beasley and Ed Davis were caught up in a different betting scheme.
Damon Jones, who played alongside LeBron James in the mid-2000s and later reunited with him as an unpaid assistant with the Los Angeles Lakers, allegedly provided non-public injury information on a Lakers player to an illicit betting syndicate in February 2023. This information purportedly enabled the syndicate to place successful bets on the Lakers. Although the indictment does not name the player, it aligns with James's profile, and it remains uncertain if James has been questioned regarding the matter; he has not publicly commented on whether he feels victimized by the scheme.
Anticipated Guilty Pleas
Jones is the first of over 30 charged defendants to appear for a change of plea hearing, pleading guilty in April to wire fraud conspiracy in the sports betting case and a separate wire fraud count in the poker case. He is scheduled for sentencing in early 2027.
Recent developments include prosecutors informing the presiding judge in the poker case that agreements are forthcoming with 11 defendants, including Shane Hennen, thought to be a key figure in various gambling schemes. Hennen faces charges related to a noted point-shaving case involving a number of Division I college basketball players.
Cooperation with Other Leagues
In addition to basketball issues, the Brooklyn courtroom is also dealing with the cases of Guardians pitchers Emmanuel Clase and Luis Ortiz, who face charges in a pitch-rigging scandal. Although the NFL is not currently involved in these integrity issues, it did suspend ten players for sports betting violations this year. The NHL also suspended Ottawa Senators player Shane Pinto for 41 games due to a proxy betting incident.
When asked about the potential for collaboration among leagues, Silver was open to the idea. He noted that a coalition could work toward establishing best practices regarding insider trading, prop manipulation, and other abuses within prediction markets.
Silver expressed particular concern about prop bets placed on an individual player’s performance, deeming them "problematic." While NCAA President Charlie Baker has urged Congress to impose federal bans on college props, the leagues have yet to formally pursue such actions. The removal of prop bets from the regulated US market could significantly affect sports betting revenues.
Control Issues
Silver lamented that the NBA has decisively limited authority over how leagues’ intellectual property is utilized by betting operators, stating, "We don’t get to make decisions as to whether prop bets can be placed."
Pokorny, who has significant experience in the Eastern District, oversaw investigations involving former players including Jontay Porter, who was banned from the NBA for fixing a game following the PASPA ruling. Porter pleaded guilty to wire fraud charges, having been encouraged by an associate to quit two games prematurely to secure betting profits for a syndicate. The prosecution regards Porter as a victim of extortion and he awaits sentencing on wire fraud conspiracy charges.
Pokorny previously co-authored an op-ed outlining a regulatory framework inspired by FINRA, the entity overseeing brokerage firms and exchange markets. She positions her model as a strategy to address the integrity issues permeating sports.
"The office would investigate integrity flags, coordinate with law enforcement, refer crimes for prosecution and recommend best practices to prevent future wrongdoing," Pokorny stated.
Discussing Federalism
Recently, state legislators and regulators met in San Diego for the National Council of Legislators From Gaming States, discussing diverse topics, including prediction markets—a focal point of debate amid ongoing litigation over sports event contracts. North Carolina has introduced a 6% tax on trading fee revenue from CFTC-licensed prediction markets, as part of Governor Josh Stein’s budget.
Steve Geller, former Florida state Senator and NCLGS founder, noted that states strictly control sports wagering regulations, which traditionally fall under their jurisdiction. He views taxation of prediction markets as reasonable but opposes federal government regulation of sports betting.
Silver continues to advocate for federal standards, preferring a unified approach over the fragmented regulations of 40 states. While negotiations with the CFTC for an MOU are ongoing, the NBA has not yet finalized an agreement, though MLB has recently partnered with Polymarket as its official prediction market.
Silver emphasized that the NBA views sports betting as a form of entertainment, but recognizes the need for responsive controls to prevent betting-related issues from escalating. "People can get over their head fairly quickly," he remarked, underscoring the necessity of implementing safeguards.
