Business
Commentary: The NBA’s gambling scandal was utterly predictable — and other pro sports will be next
I may be revealing a secret cherished by columnists the world over, but I admit that among the columns we relish writing the most fall into the “I told you so” genre.
Case in point: In April last year, in a column about the gambling mess ensnaring Shohei Ohtani’s then-interpreter, I warned that the pro sports leagues’ enthusiastic embrace of betting would inevitably produce a major scandal.
“It might not surface in the next months or even years,” I wrote, “but it will happen.”
Get a big bet on Milwaukee tonight.
— Damon Jones’ alleged message to gamblers after learning that LeBron James would be sitting out a Lakers-Bucks game
The calendar, as it turned out, ticked over at 19 months. Last Thursday, federal prosecutors charged National Basketball Assn. player Terry Rozier and former NBA player and assistant coach Damon Jones with fraud and money laundering in connection with a scheme to fix bets on NBA games. Portland Trail Blazers head coach Chauncey Billups was charged in a separate indictment linking him to a Mafia scheme to fix poker games; Jones was also named in that indictment.
The NBA has placed Billups and Rozier on leave. They’re both due to appear in federal court in Brooklyn over the next few weeks to enter pleas, though both have asserted their innocence.
It may not be easy for the league to wash its hands of this mess. All the professional sports leagues spent years shunning gambling as a threat to their public image of integrity before embracing the siren call of big-time sports betting, bringing gambling companies and their ever-increasing customer base into their tents. But the NBA was ahead of the crowd.
In a 2014 op-ed, NBA Commissioner Adam Silver effectively cried “uncle” in the league’s battle against gambling.
“For more than two decades,” he wrote, “the National Basketball Association has opposed the expansion of legal sports betting, as have the other major professional sports leagues in the United States.” The leagues supported a 1992 federal law prohibiting sports betting except in grandfathered venues, such as Las Vegas.
They took a stern position against players and personnel caught betting on their games and their sports, dating to 1919 and the so-called Black Sox scandal, in which eight members of the Chicago White Sox were accused of throwing the World Series for the benefit of a gambling ring. Major League Baseball hired an austere federal judge, Kenesaw Mountain Landis, as its commissioner and gave him unchecked authority to clean up the game. He banned the eight players from baseball forever.
In recent times, Silver observed in his op-ed, the American appetite for sports betting has only risen. Accordingly, he called for legalizing the practice so it could be “brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”
(The 1992 law was overturned by the Supreme Court, and legalized sports betting spread coast to coast.)
Given the subsequent developments, one can tag Silver for his childlike innocence in counting on the government to regulate an industry collecting billions of dollars a year from millions of users while operating with a legal imprimatur.
Silver wrote that among his “most important responsibilities as commissioner of the N.B.A. is to protect the integrity of professional basketball and preserve public confidence in the league and our sport.”
When I asked the NBA if Silver has had second thoughts about his 2014 op-ed, the league replied, “We continue to believe that a legal, regulated, and monitored sports betting market is far superior to an illegal one operating underground,” and suggested that a single federal regulator would be preferable to the existing state-by-state patchwork, though the activities alleged in the federal indictments almost surely would be crimes in any state. Silver did say during a broadcast interview Friday that the case gave him “a pit in my stomach.”
The league’s ability to monitor the behavior of its own people is questionable. Consider a March 23, 2024, Charlotte Hornets game against the New Orleans Pelicans. According to the indictment, Rozier let the gambling conspirators know that he would take himself out of the game early, allowing them to profit from bets that his stats would fall short of bookmakers’ expectations.
The NBA, alerted by sports wagering companies to “aberrational behavior” involving Rozier in the game, investigated but later said it could find any “violation of NBA rules.”
The NBA can hardly claim to have been blindsided by the new indictments. Only last year, another federal gambling case erupted involving NBA games.
In that case, prosecutors alleged that a gambler named Ammar Awawdeh forced then-Toronto Raptors player Jontay Porter to take himself out of a game early. That led gamblers who knew of the arrangement to bet that his stats for the game would fall short of expectations; those insiders made more than $100,000 on their bets, the prosecutors charged.
According to text messages filed with the 2024 indictments, Awawdeh acknowledged “forcing” Porter to participate in the scheme to help clear some of his gambling debts.
Awawdeh engaged in plea negotiations in the case, but the outcome couldn’t be determined. Porter pleaded guilty to related federal fraud charges, and is scheduled to be sentenced in December. The NBA has banned Porter for life.
Awawdeh was also named in last week’s indictment over the alleged poker scam.
In recent years, the pro leagues have cozied up to the gambling industry, claiming that their interest is merely “fan engagement” — that is, keeping TV viewers in front of their sets even during blowout games.
Only 11 states bar sports gambling today. They include the customary anti-gambling holdouts Utah and Hawaii, and California, where ballot measures to legalize sports gambling were defeated in 2022. As I mentioned in 2024, the perils of this expansion are manifest.
They’ve created a new underclass of gambling addicts while largely failing to fulfill their advocates’ assurances that state-sponsored and regulated gambling would produce a new, risk-free revenue stream for state and local budgets. The outcomes of some games have come under suspicion even where no evidence of fixing has been found.
The leagues have gone beyond just tolerating gambling; they’ve made partnership and sponsorship deals with the major sports gambling companies. The two leading companies, FanDuel and DraftKings, are official corporate gambling partners of the NBA, National Football League and Major League Baseball.
During broadcasts and steaming of games, it’s common to see in-game statistical projections on-screen — what are the chances of this hitter striking out, or hitting a home run, for instance.
During the seventh inning of Game 2 Saturday, Fox flashed a projection that there was a 36% chance that Yoshinobu Yamamoto would pitch 9+ innings. (He went the distance.)
The only reason to offer such projections is to feed the appetite for in-game proposition, or “prop,” bets. These are fundamentally bookmakers’ estimates. They don’t tell ordinary viewers anything they need to know to enjoy the coming innings, but do give bettors something to chew on before putting money down on the proposition “will Yamamoto pitch a complete game?”
In-game prop bets, as it happens, are like heroin to the vulnerable, offering instant gratification (or dismay). They “may be associated with risky gambling behavior,” according to the National Council on Problem Gaming. Draftkings heavily promotes prop bets on its sportsbook web page.
In a memo issued Monday, the NBA singled out prop bets as trouble spots: “In particular,” the memo says, “proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”
The major gaming companies have rolled out new ways to keep bettors betting. Smartphone apps, for example. In the old days no one could place a legal sports bet without traveling to Las Vegas, a built-in curb on problem gambling. Today, anyone with a smartphone can place a bet, often without certifying their age or financial resources.
“The advent of smartphones in 2007 and the Supreme Court decision in 2018 opened the door to fully frictionless, 24/7 legal gambling,” problem gambling experts Jonathan D. Cohen and Isaac Rose-Berman wrote recently.
I asked FanDuel and DraftKings if they accepted any responsibility for problem gaming in the U.S. DraftKings didn’t reply. A spokesman for FanDuel told me by email that the company “takes problem gambling seriously and continually works to identify at-risk behavior … including when a customer attempts to deposit significantly more than what they typically do,” or “excessive time on site, chasing losses or signals from customer service interactions.” In those cases, the company sometimes imposes deposit limits or timeouts or can exclude the user entirely.
That brings us to the latest indictments. The feds identified seven NBA games in 2023 and 2024, including the 2023 game in which Rozier allegedly tipped confederates to his decision to bench himself.
Among the others were a 2023 Trail Blazers game in which gamblers were tipped that the team would sit its best players so it would lose, thereby acquiring a better position in the upcoming NBA draft; and two Lakers games in which Jones allegedly tipped gamblers that star LeBron James, a friend since they played together on the Cleveland Cavaliers, was hurt and wouldn’t be playing.
“Get a big bet on Milwaukee tonight,” Jones allegedly told a contact before the first game, against the Milwaukee Bucks. James sat it out and the Lakers lost. James isn’t identified by name in the indictment, but its description of his roles helped identify him. James hasn’t made a public comment about the case, but he hasn’t been accused of any wrongdoing.
Can anything stem this tide? The smart bet at this moment is “no.” There’s just too much money riding on the continued expansion of sports betting: DraftKings has more than doubled its revenue since 2022, reaching $4.8 billion last year, and nearly doubling its monthly average users to 3.7 million. FanDuel is owned by a British gambling conglomerate, so its U.S. sports revenue is difficult to parse.
That’s a lot of money to be thrown around promoting more sports gambling, making it harder for governments to regulate and for sports leagues to turn up their noses at the income. Keeping their image for integrity intact in this world of greedy and needy players and voracious gamblers is only going to get harder.
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
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Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
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