THE MOB IS BACK, FBI Busts MASSIVE Sports Betting Racket ft. Doug Polk
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Heats Rozier and Trailblazers Billups charged in sports betting and mafia-backed poker schemes.
This was this morning.
This is breaking news, and this is a wild, wild case.
Portland Trailblazers head coach Chauncey Billups and Miami Heat Guard Terry Rozier were arrested Thursday along with more than 30 other people accused of participating in schemes involving illegal sports betting and rigged poker games backed by the mafia.
Rozier is accused of participating in an illegal sports betting scheme using private insider NBA information, while Billup is being charged in a separate indictment alleging a wide-ranged scheme to rig underground poker games that were backed by mafia families.
Authorities said both men face money laundering and wire fraud conspiracy charges and were expected to make initial court appearances later Thursday.
And I think it's important that we look at this into two different sections, right?
Because there's actually technically two different cases going on concurrently.
There's a sports betting case and then there's a poker case.
So I'm, you know, I'm familiar with both.
I would say I have more insight into poker specifically, being that's more my background.
But I was, look, like I've heard about some of these athlete games in the poker world for a long time.
There have been rumblings of cheating for quite some time as well.
And then also a lot of this the sports betting side, we heard even from the NBA earlier this year that there was an investigation where they looked into Terry Rozier and cleared him of wrongdoing.
So we've seen swirling stuff about this for a while now, but now we're just starting to see it come to light.
Well, I mean, for one, we can drill down on the sports betting real quick.
I mean, yeah, we saw them saying they were investigating Terry Rozier, but then you started seeing these like low-light compilations of him just like seemingly just chucking the ball away.
Like it looked like YMCA activities.
I don't really know what to say there.
And that obviously, I mean, I'm sure that was on the FBI's radar, but that like started putting it on everyday people's radar.
Yeah, I think, look, I mean, they're athletes, not actors, and there's a reason.
I think you think you could find an easier way to get some low stats than some errant pass to the middle of nowhere, right?
Just maybe you're a little bit slower, maybe you're a little less accurate, maybe you're a little bit less coordinated.
But, you know, I think the incident that really caused a lot of investigation into Rozier the first time, as I understand it, was he had a game where I think he faked an early injury to kind of go down where he then doesn't have to play, doesn't have to throw a bad pass, doesn't have to do any of that stuff.
He just won't hit that stat line.
If you're not familiar with player prop betting, I'll break it down for you briefly.
So when you, any sporting event, you can bet on not just the score of the game or who will win or the total amount of points, stuff like that.
You can also bet on how individual players will perform.
And so if you are a player in the league or in any sports league, you can pretty easily ensure you're going to be doing poorly by just making bad passes, going out, getting out, getting injured, whatever it might be.
So what would typically happen in these types of scenarios are players would load up on bets against themselves.
And there's a few different reasons they might do this.
They might have gambling debts to some bad people they need to kind of try and get rid of.
They might want to make more money themselves.
They might, you know, not think they're going to get caught, whatever it might be, but they bet against themselves to perform well.
And then they go out there and they, you know, knowingly lose or miss their pass or shot or get injured.
So it seems like Rozier on the on the sports betting side, Rozier and possibly some other players as well, were betting against themselves.
And then, you know, there's this one Rozier clip, I think, or article that came out where essentially he bet $200,000 against himself, allegedly.
And there's a video of them counting up the money afterwards.
Like, oh, you know, he would get paid tens of thousands of dollars.
It makes you think that he might have gotten involved with the wrong people.
And certainly, given that now we have apparently mafia ties coming into play on this, that I guess maybe we don't even have to say he maybe got involved with the wrong people.
I guess we'll say that as a disclaimer for now.
But with a lot of these situations, people, they get in so deep and then they don't have a good way out.
And then they have this one road in front of them that they can do to save themselves.
So we don't know if he has like, you know, obviously bad financial problems in general, but he also might have gambling issues outside of basketball.
He might have other criminal things going on that we aren't privy to or that we don't know about that might be reasons that you would do this.
Because yeah, it seems insane, right?
You've made nine figures in basketball.
Terry Rosier is a good basketball player.
You know, why would you do this?
It makes so little sense from the outside that you almost, there almost has to be something else going on there that we don't know about.
Yeah, so let me just kind of explain this for people at home.
So people will often play poker in a home game, right?
Or in a private residence or somewhere where you're just with like either friends or a friend's friend or a small group or basically when you're not playing at a card room or a casino, it's called a private game or a home game.
And certain home games, certain private games, they'll be played for very high stakes, for lots of money.
We're talking hundreds of thousands or even sometimes millions of dollars on the table.
And what those games will do is they will try to make money in a variety of ways, usually unethically.
Sometimes it's just a good game amongst friends.
That's what you want to look for.
But a lot of other times it's not.
Either they're taking a cut out of the game.
Like, for example, what we saw Gilbert Arenas charged with just a few months ago for running Potlam Omaha games where he was taking a cut out of the game, again, allegedly illegally to make money off the players in the game.
That's illegal.
But then also they might be trying to make money in other ways like cheating within the game itself, which, and we're going to see a lot more as this comes forward on the Chauncey Phillips issue.
It appears what happened in these games was that Chauncey Phillips and other defendants in this case would have a well-known celebrity or well-known athlete come play in a game.
And then that would be sort of the reason other players would want to come play, right?
Like Chauncey Phillips, a very famous, great basketball player.
You might want to play with him.
You might want to play with some of the other people on his network.
And then when you get there, you sit down at the table and you're being cheated within that game itself.
So for example, the most common way that this would happen.
And by the way, there's a great video by Wired they put out two weeks ago.
Amazing timing.
But basically, one of the most common ways to cheat is there's a shuffling machine.
If you're playing in a home game, you should be very worried when you see a shuffling machine because those machines are only rented by essentially casino establishments.
You have to be a licensed gaming establishment to be able to rent them.
So if you go to someone's house and you see one, that means it's black market, okay?
Which should already kind of have some alarm bells ringing.
Why does this guy have this shuffler?
You have to go through these other ways to get that.
Now, what you can do is there in a variety of different ways, you can use that shuffling machine to cheat.
Now, some of the shuffling machines have a camera inside them.
So they know all of the cards.
So imagine you deal all the cards out, but you already know what everyone has.
And then you can relay that information to a player in the game, either through Bluetooth or through if another player is relaying it to signaling, whatever it might be, so that you know who will win the hand before the cards are even dealt, before the flop has even come.
Now, the player that's cheating can bet tons of money in the hand, knowing they will win.
So they don't have to worry about what cards are on the flop, whether they're dealt any of that stuff.
They just know the money will come back to them.
And that's why this is so damning because you might see a hand like this as a different player who's not cheating, and it makes no sense.
They're playing crazy.
They're betting all this money and they won, but it looks like they're a bad player, but really they're cheating you.
And that's the most common way we see in these home games, people being cheated.
And that is allegedly what is going on here with Shaunce Billips.
So the most common things you can do, card marking is the most simple one, right?
Like you put marks in the back of cards.
Usually you'll mark the high cards.
You'll know who has strong, like an ace.
And then either you have like glasses that can see a certain ink, or maybe it's even like a certain part of the card, whatever it might be.
That's a very common one.
Another very common one is two players will collude where they'll signal to each other when someone had a good hand or someone has a relevant card.
And then that way the other guy can see them and knows if they have a good hand or not.
And then the other, probably most common one is the shuffler machine way of going about it, where you know what cards are being dealt out to different people already.
So you know who's going to win.
So I have never heard x-ray before.
Certainly it's going to be interesting to see what that is, but who knows?
I mean, I really, I have no idea.
Maybe, maybe they meant RFID because they use RFID technology sometimes.
I actually got cheated online where someone came to my house and they planted a device onto the computers so that they could see all of the cards you got dealt.
And they cheated my roommates and I out of probably $100,000 or more.
Yeah, it was crazy.
And then, so I realized it because I was playing someone and they were, they played a hand.
And I won't go into hand history here on the show because it'll be too detailed and whatever, but they played a crazy hand.
And I sat there and I lost a bunch of money and I'm looking at it and I'm like, this makes no sense.
There's no reason for him to do this, but it was right.
So if you're seeing something like that, it's a pretty good indication.
Like there's something going on.
And I don't just mean like an unlucky card came.
Like the way they played their hand makes no sense.
So I reached out to the website at the time.
It was called PokerStars and they launched an investigation to the account that played versus me.
And after several months, they said, Doug, we've only ever done this five times in the history of the website.
We're giving you every dollar back because this guy was cheating you.
And I knew the guy it had to be because someone came into my house like the day before and I, it, it all added up, right?
So the guy's name was Joshua Tyler.
You can read about it online.
It was a crazy cheating thing.
Anyway, the point is, cheating happens so much in poker.
Look, it's a game for money, right?
And whenever there's money, whenever there's real stakes, you get to vote with where you play, which is why you should play at places that are going to respect your money and are going to try to do it the right way.
I was like, a few different people in the poker world were saying, like, this has been a known thing, these specifically these celebrity games.
And that's what kind of amazed me was like, I don't know, maybe just the news hasn't spread to the masses.
Because I figure if you're an experienced enough, you know, poker player to want to jump into an environment like that, you would know there'd be some signs to look out for.
I mean, I've played like, you know, the boys are having some beers.
I've played those, but I've never played a game with significant stakes because it's just too, there's just too many things that can go wrong.
Like, people cannot pay you.
They can be taken a cut out of the pot.
They're not supposed to.
There could be cheating.
There could be collusion.
These games get robbed.
Like, okay, so New York is a great example of this.
New York does not have legalized betting basically at all, right?
Which, I mean, it's crazy.
You can't just play a poker game in New York City today.
So these underground games develop.
And there was a famous movie about this called Molly's Game, where she talked about kind of like all these underground games.
These games, they'll get rated by criminals.
They'll get raided by the feds or the state or like the number of things that can go wrong for you in a home game.
And look, I get it.
It.
It's convenient.
It's nice.
It's fun to go to your buddies.
But there's a point where you're taking on so much risk.
And we've had so many of these stories come forward over the last few years.
Even on poker streams, there was a very famous player named Mike Postle who played on a show called Stones Gambling Hall.
This is like a few years ago now.
And again, allegedly, over the course of two years, he just beat everyone on almost every show that he played.
And he won several hundred thousand dollars playing for a few hundred bucks at a time.
And what he was doing, again, allegedly, is he had a guy in the back who could send him the cards and he would just look at his crotch like this the whole time.
Like, like, this is not, this is not an isolated issue in poker.
And I hate to say this.
Poker is a beautiful game.
I love poker.
I'll defend poker to the bitter end.
But there are so many ways to cheat that you have to make sure you're playing at a place, at a location, at a venue, at a website, whatever it is that respects the integrity of the game and wants to protect you.
Because if they don't, you're going to have problems.
You almost look at it, like, okay, I assume all these things are like what you're supposed to say, right?
And then when it's on what you know, you're like, what the fuck?
Like, like another, another good example is like poker movies, right?
The number of poker scenes where they play a hand and you're just like shaking your head.
I can't believe this shit.
Like there's a James Bond scene where it's like straight flush and quads and full house and nothing like they all have like monsters, but then like somehow they only have like 10 blinds.
And like it'll drive you nuts once you actually know a space when you see other people weigh in on it.
Again, like, you never know how people end up in these places, right?
A lot of times they have other things, other issues in their lives going on you don't know about.
And as it pertains specifically to poker cheating, what I imagine happens somewhat often is, let's just say before Chauncey Phillips cheated in poker, allegedly.
I guess from the poker world perspective, I mean, you mentioned that these games they're somewhat prevalent, I think, at least, you know, I mean, obviously they're in the underworld.
Is there kind of a sigh of relief from the poker world seeing this happen?
Like, okay, finally, this is like a, you know, high-profile crackdown.
So specifically for Chauncey Phillips, there was a podcast from a few years ago where some players talked about this, like a smaller poker podcast where they talked about this exact thing where people knew about him cheating.
And on that podcast, I was listening to it early today to just kind of like go down memory lane.
And like, yeah, the thing is, you know, what can you really say?
You can't go up against, you know, this guy's a huge name in basketball.
What chance do you have?
Can you really take this guy down?
And it's nice to see like, yeah, I mean, if you commit crimes and you are stealing from people, like don't get like, like, we need to make sure this is really clear.
When you rig a poker game, you are stealing money.
So on the sports gambling side, obviously a lot of people are using this opportunity to sort of relitigate the sports gambling legalization that occurred a few years back.
I mean, what do you make of all?
I mean, I guess, what do you make of all this?
Because I mean, you know, obviously a lot of people are saying, I told you so.
They're kind of, you know, crossing their arms and saying like, well, well, we tried to warn you.
What's sort of the reaction from the kind of broader gambling world to this?
Yeah, so it's interesting because when you look at sports betting and how close and how ingrained into sports it's become, you can kind of see the issue, right?
Where it's like, okay, we have all these very strict anti-gambling things on players and coaches, but we're promoting gambling so pervasively into the sport itself.
Like, where do we draw the line?
And I'll also admit, like, and this is coming from someone that is a gambler and promotes poker sites and does, you know, gambling content.
When I see something as like an NBA game or NFL game, and they're like, and the current line is minus three and a half.
It's like, you know, when I grew up, I was a big sports fan.
I watched every sport.
I knew all the players.
I loved it, loved sports as a kid, loved sports as an adult.
And I kind of feel like I still sort of feel like that shouldn't be like such an ingrained environment for gambling promotion.
What it's so, it's just, I don't know.
It's like, it's like a, it's like a part of America.
It's like part of the country.
It's like, so like, it's part of our fabric.
At the same time, I recognize that companies should have a right to promote and these private entities have a right to decide who they let promote.
So I don't want to go down, go on my high horse here one way or the other.
But what I will say is this.
I feel like regardless of whether you want to ban this or not from sports, like allowing the promotion of gambling, it's going to happen.
And I think like I would kind of relate it a little bit to like prohibition, right?
Where we banned alcohol in the country and then no one drank.
No, that's not what happened, right?
People kept drinking.
So like people are going to do shady, unethical things.
And I don't think like that should be the, whether we allow it or not.
I think it should be based on like, you know, whether it makes sense to promote this or not.
But I don't think it has any impact on will players and coaches and refs like Donahy a few years back, will these guys cheat or use this, you know, use this type of activity to like further themselves.
I don't think it has anything to do with the fact that FanDuel now presents the halftime show.
I mean, that makes, well, I mean, because like you're talking about with the kind of in-your-face sort of promotion.
There was a clip that was going around.
I don't remember which account had the clip, but it was ESPN and they were breaking the news and they were like hashing it out trying to figure out what happened.
The interesting thing with the sports gambling, I guess, discourse was a lot of people were saying like, okay, sure, people have the liberty to do that.
So, you know, it's a bet like it's been happening for a long time, but a lot of people are raising concerns over the integrity of the sport maintaining intact because guys like Terry Rozier can't even help.
Like, they make it obvious.
They can't even help themselves but participate.
And it impacts the actual sport itself, right?
Like the integrity of the sport.
And I find that a much more sort of compelling argument than like, you know, it's just bad behavior.
I mean, you can obviously legislate morality to a degree, but like with something like sports gambling, it's like, I think the integrity sort of argument is much more compelling.
But I mean, yeah, I don't know if you had any sort of like thoughts on that specifically.