Los Angeles Lakers star LeBron James has been dragged into the NBA’s latest federal gambling investigation after his former Cleveland Cavaliers teammate and close friend Damon Jones was accused of leaking and profiting from non-public information about James’ playing status.
Jones, 49, was arrested Thursday in a sweeping federal betting investigation that also resulted in the arrests of Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier, according to court documents unsealed by the U.S. Department of Justice.
The indictment, reviewed by Heavy Sports, details how Jones allegedly tipped off associates about James’ availability for a 2023 Lakers game — information not yet made public — allowing bettors to profit illegally.
Text Message Revealed in Federal Indictment
Court documents outline the most damning evidence: a leaked text message Jones sent to one of his co-conspirators hours before the Lakers’ February 9, 2023 game against the Milwaukee Bucks.
“Get a big bet on Milwaukee tonight before the information is out! [Player 3] is out tonight. Bet enough so Djones can eat too now!!!”
The message, included in the indictment, refers to James as “Player 3” and shows Jones urging a bettor to place a large wager on Milwaukee before the injury news was released.
At the time, James had not yet been ruled out on the NBA injury report. He ultimately missed the game with a lower-body injury, and the Lakers lost 115–106.
Prosecutors stated that Jones acted on inside information he obtained while serving as an unofficial member of the Lakers’ coaching staff under then-head coach Darvin Ham, a role that provided him access to players and team operations, despite not being formally employed by the organization.
LeBron James Unaware of Jones’ Actions
While James’ name surfaced in connection with the scandal, The Athletic reported that he was completely unaware of Jones’ actions.
“A league source with knowledge of the situation told The Athletic that James was unaware that Jones shared information about his playing status,” the report said.
James has not been accused of any wrongdoing, and the indictment does not claim that he was directly involved or complicit in Jones’ activities.
NBA, Lakers Respond to Growing Gambling Scandal
In a statement Thursday night, the NBA confirmed that Billups and Rozier were placed on immediate leave while the league continues to cooperate with federal investigators.
“We are in the process of reviewing the federal indictments announced today,” the statement said. “Terry Rozier and Chauncey Billups are being placed on immediate leave from their teams, and we will continue to cooperate with the relevant authorities. We take these allegations with the utmost seriousness, and the integrity of our game remains our top priority.”
FBI director Kash Patel slammed the massive and complex “fraud” as “mind-boggling.”
The league has faced increasing scrutiny over its growing partnerships with sportsbooks amid a sharp rise in betting-related incidents over the past two seasons.
Lakers coach JJ Redick confirmed Thursday that the team held multiple internal meetings this week to reinforce the league’s strict anti-gambling policies.
“It’s obviously at the front of everyone’s awareness, given the last two years,” Redick told reporters after practice, per ESPN’s Dave McMenamin.
Anthony Davis Also Dragged into Alleged Scheme
The indictment further alleges that Jones shared confidential information about another Lakers player — identified as “Player 4” — ahead of a Jan. 15, 2024 game against the Oklahoma City Thunder.
According to prosecutors, Jones told bettors that the player — who clearly matches former Lakers center Anthony Davis — was injured and would play limited minutes. Davis was officially listed as “probable” on the team’s report but went on to play 35 minutes, scoring 27 points with 15 rebounds as the Lakers won.
Jones reportedly received $2,500 via peer-to-peer payment for sharing the tip, while a co-defendant wagered $100,000 on the Lakers to lose. After the plan failed, Jones allegedly insisted he had received “credible non-public information” about Davis before the game.
Jones’ Ties to LeBron James and the Cavaliers
GETTYDamon Jones and LeBron James before an NBA Playoff game.
Jones played with James on the Cavaliers from 2005 to 2008 and was part of the 2007 NBA Finals team that lost to the San Antonio Spurs. The two remained friends after their playing careers overlapped.
James later helped Jones secure an assistant coaching position with the Cleveland team from 2016 to 2018, further strengthening their professional relationship.
Jones has not coached in the NBA since 2018 but has reportedly maintained connections with players and staff across several teams — ties that prosecutors say he exploited for personal financial gain.
The investigation remains ongoing as the Department of Justice and the FBI continue to uncover the extent of the NBA insider betting network.
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