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FBI Gambling Bust Exposes Hazards of Legalized Betting

by | Nov 4, 2025 | 0 comments

Texans Must Oppose Sports Wagering and Casinos

The documented proceeds from just one rigged poker game uncovered in the FBI’s October 23, 2025, enforcement action against illegal gambling networks were $7,000,000,1 a sum that highlights the extensive fraud and corruption commonly found in such activities.

This federal operation, encompassing 11 states and resulting in more than 30 indictments,2 serves as a direct illustration of the dangers posed by sports betting and casino gaming.

With documented connections to organized crime, insider manipulation by professional athletes and coaches, and clear violations of federal statutes, the bust demonstrates why Texas must reject any expansion of gambling

The Schemes Were Unequivocally Illegal Under Federal Law

The FBI’s involvement was necessitated by the interstate nature of the operations, which implicated commerce across state lines and required federal jurisdiction to address the scope and complexity that individual states could not manage independently.

Defendants allegedly violated 18 U.S.C. § 1955,3 which prohibits the operation of an illegal gambling business involving five or more individuals, conducted for more than 30 days, or generating over $2,000 in a single day.

Additional charges included wire fraud conspiracy pursuant to 18 U.S.C. § 1343, involving the use of interstate communications to execute the fraud; money laundering conspiracy under 18 U.S.C. § 1956, through which proceeds were concealed via shell entities and cryptocurrency; as well as extortion and assault.

Organized Crime Played a Central Role

This bust had direct affiliations to La Cosa Nostra families,4 including the Bonanno, Gambino, and Genovese.

Key figures such as Ernest Aiello and Julius Ziliani of the Bonanno family, Lee Fama and Joseph Lanni of the Gambino family, and Matthew Daddino of the Genovese family provided financial support, enforcement, and protection.

They employed threats and intimidation5 to collect debts and maintain control.

The poker games utilized sophisticated cheating methods: concealed cameras in card-shuffling devices, tables equipped for x-ray viewing of cards, marked decks detectable only with specialized lenses, and coordinated signaling among participants.

These mafia-backed enterprises illustrate gambling’s longstanding appeal to criminal syndicates as a source of untaxed revenue.

Legalizing casinos or sports betting in Texas would create opportunities for such groups to establish legitimate facades while continuing illicit activities, leading to elevated crime rates and increased public expenditure on law enforcement.

The Participation of NBA Coaches and Players Represents a Profound Breach of Integrity

Miami Heat guard Terry Rozier allegedly disclosed non-public information regarding injuries and player performance, enabling bettors to secure substantial gains—such as $200,000 from a March 2023 game involving intentional underperformance or early exits.

Portland Trail Blazers head coach Chauncey Billups reportedly facilitated victim recruitment for rigged poker events.

Additional individuals implicated include former player Damon Jones and athletes Eric Earnest, Marves Fairley, Shane Hennen, and Deniro Laster, who shared details on lineups, strategies, and unreported conditions.

This case exemplifies the risks of manipulation: coaches or players providing behind-the-scenes intelligence on plays, starting rotations, or injuries to influence betting outcomes.6 

These are the people who were caught. Imagine how widespread this problem could be, knowing how easy it is to keep one person’s minor injury under wraps. Think about how prolific this problem already could already be and will become as more people sign up for the big online sports betting platforms.

In a legalized environment, such incentives would grow and expand, compromising the fairness of sports and other competitions, diminishing fan confidence, and inviting widespread corruption across professional and collegiate sports. For many, it is hard enough to trust the legitimacy of professional sports today; What happens when we find out they’re all rigging games and intentionally underperforming so they can get rich by defrauding thousands of individuals?

Long-term consequences of these coordinated lootings in a legal sports betting environment include heightened addiction rates, family financial ruin, and more.

The Potential for Cheating Is Intrinsic to Gambling Systems

The potential for cheating isn’t always a flaw in gambling systems. It’s often a feature. The whole idea of gambling is to gaslight users into thinking they have a chance to get rich quickly, preying on desperate individuals. 

In jurisdictions where betting has been legalized, instances of fraud and rigging have increased, outpacing regulatory efforts.

Texas, already contending with the rising cost of living, crushing property taxes, and an unsustainable government spending appetite, cannot afford the additional fiscal strains of attempted enforcement, treatment programs, and social support necessitated by gambling expansion.

Texans for Fiscal Responsibility Urges Opposition

After the FBI’s recent enforcement action, hopefully even more Americans will acknowledge gambling’s systemic risks.

Texans for Fiscal Responsibility urges opposition to all legislation advancing sports betting, so-called “prediction-markets” and casino operations designed to give a monopoly to the state and one or two political donors.

  1. https://www.nbcnews.com/news/us-news/miami-heats-terry-rozier-arrested-federal-gambling-related-investigati-rcna239306
  2. https://www.cbsnews.com/news/terry-rozier-chauncey-billups-nba-gambling-poker-indicted-names/
  3. https://www.documentcloud.org/documents/26194403-us-v-aiello-et-al-indictment/
  4. https://sports.yahoo.com/nba/breaking-news/article/x-ray-tables-rigged-card-shufflers-and-collusion-how-chauncey-billups-allegedly-helped-the-mafia-cheat-players-out-of-millions-at-illegal-poker-games-023324553.html
  5. https://www.bbc.com/news/articles/cvgmpp3x5x5o
  6. https://abcnews.go.com/US/miami-heat-terry-rozier-charged-nba-betting/story?id=126789368

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