Former NBA Player Damon Jones Pleads Guilty in $35K Gambling Fraud Case

NEW YORK -- Former NBA player and assistant coach Damon Jones became the first person to plead guilty Tuesday in a gambling sweep that led to the arrests of more than 30 people, including reputed mobsters and other basketball figures. Jones, 49, entered a guilty plea to a single count of conspiracy to commit wire fraud during the first of back-to-back plea-change hearings in Brooklyn federal court. Sentencing guidelines call for a punishment of 21-27 months in prison, and Jones also agreed to forfeit $35,000. His sentencing is set for Jan. 6, 2027, before Judge LaShann DeArcy Hall. Reading a prepared statement to the court, he acknowledged that he conspired with others to defraud sports betting companies by using "insider information that I obtained as a result of my relationships as a former player." "I would like to sincerely apologize to the court, my family, my peers and also the National Basketball Association," Jones said. He said the goal of the conspiracy, which ran from December 2022 to March 2024, was to use his insider knowledge -- which prosecutors say involved nonpublic information about injuries to NBA stars -- to make money from sports books. He acknowledged that his actions violated the NBA's code of conduct and also the terms of service on sports betting websites. Jones was charged in separate cases with profiting from rigged poker games and providing sports bettors with nonpublic information about injuries to stars LeBron James and Anthony Davis, according to court filings. None of the other defendants have shown a willingness to plead guilty. On Monday, prosecutors said they were seeking additional charges against a co-defendant in the betting case, former Miami Heat guard Terry Rozier. Jones' lawyer, Kenneth Montgomery, declined to comment before Tuesday's hearings. Jones was arrested last October along with Rozier, Portland Trail Blazers head coach and Basketball Hall of Famer Chauncey Billups, and others, including a sports bettor accused of cashing in on injury information. Jones was one of three people charged in both the poker and sports betting schemes. Originally from Galveston, Texas, Jones earned more than $20 million playing for 10 teams in 11 seasons from 1999 to 2009. He and James played together in Cleveland from 2005 to 2008, and Jones served as an unofficial assistant coach for James' Los Angeles Lakers during the 2022-2023 season. Prosecutors say Jones sold or attempted to sell nonpublic information to bettors that James and Davis were injured and either wouldn't be playing or would play less time in certain games. In the poker scheme, prosecutors say Jones was among former NBA players used to lure unwitting gamblers to poker games that were rigged using altered shuffling machines, hidden cameras, special sunglasses and even X-ray equipment built into the table. According to the indictment, Jones was paid $2,500 for a game in the Hamptons where he was instructed to cheat by paying close attention to others involved in the scheme. When in doubt, Jones was told to fold his hand, prosecutors said. In response, according to prosecutors, Jones texted: "Y'all know I know what I'm doing!!"