LeBron James Involved In Bombshell Gambling Investigation Because Of Damon Jones

Thursday morning started like any other day in the NBA world until it absolutely didn’t. Former NBA guard and Assistant Coach Damon Jones got arrested by the FBI as part of a massive investigation into illegal sports betting. We’re not talking about your buddy losing $20 on a parlay here. This investigation spans nearly a dozen states, involves tens of millions of dollars, and includes 34 arrests total.

Jones isn’t just some random guy who happened to play in the league. He spent 11 years in the NBA and later became an assistant coach. More importantly, he was teammates with James during their Cleveland Cavaliers days from 2005 to 2008, and then coached him from 2014 to 2018. That relationship? That’s the whole ballgame in this story.

During the 2022-23 season, Jones became an unofficial, unpaid member of then-Lakers coach Darvin Ham’s staff. Ham brought Jones in after James spent the summer of 2022 working out with him. Seemed innocent enough at the time. What nobody knew was that Jones allegedly had his hand in the cookie jar, and that jar was filled with privileged information about one of basketball’s biggest stars.

How James Became the Target Without Knowing It

Here’s where it gets messy. According to the federal indictment, Jones wasn’t just hanging around the Lakers’ facility making coffee and offering motivational speeches. He was allegedly running a side hustle that would make your stomach turn.

Before the Lakers faced the Milwaukee Bucks on February 9, 2023, Jones reportedly texted his co-conspirators: “Get a big bet on Milwaukee tonight before the information is out! [Player 3] is out tonight. Bet enough so Djones can eat to [sic] now!!!”

Player 3? That’s James. And this wasn’t just some lucky guess. At the time Jones sent that text, James wasn’t even listed on the injury report. He would eventually sit out that game due to ankle soreness, and the Lakers lost 115-106. Without their best player, they didn’t stand a chance, and somebody made a lot of money knowing that information ahead of time.

What makes this particularly gut-wrenching is the timing. This game came just two days after James broke Kareem Abdul-Jabbar’s all-time scoring record. While the basketball world was celebrating one of the sport’s greatest achievements, Jones was allegedly using his insider access to profit off his friend’s injury.

The Second Alleged Incident That Sealed the Deal

Jones didn’t stop there, according to prosecutors. Nearly a year later, on January 15, 2024, before the Lakers played the Oklahoma City Thunder, Jones allegedly told his co-defendants that a trainer for James and Anthony Davis informed him that Davis was injured. The information suggested Davis would either play limited minutes or his performance would be affected.

His buddies allegedly paid Jones $2,500 for that intel through an intermediary, then placed multiple bets against the Lakers, including one whopper of a wager for $100,000. There’s just one problem: the information turned out to be wrong. Davis was listed as probable with an ankle injury but played 38 minutes, dropped 27 points, grabbed 15 rebounds, and dished out five assists. The Lakers won 112-105. After the game, one of Jones’ co-defendants wanted his $2,500 back, but Jones stood by his information. Talk about awkward.

What LeBron Knew (Spoiler: Nothing)

Sources close to James told ESPN that he had absolutely no idea Jones was allegedly selling information about his injury status. According to Dan Woike of The Athletic, James was completely in the dark about this entire operation. And why wouldn’t he be? You trust your former teammates and coaches. You let them into your inner circle. You work out with them during the offseason and welcome them into your team’s facilities.

James wasn’t accused of any wrongdoing in this case, and there’s zero indication he was involved in any capacity. He’s the victim here, plain and simple. His trust was allegedly betrayed by someone who should have had his back.

The Broader Investigation

Jones’ arrest wasn’t happening in a vacuum. The FBI’s investigation involved 34 people total, including Portland Trail Blazers coach Chauncey Billups and Miami Heat Guard Terry Rozier. This wasn’t just about one guy allegedly selling injury information. This was part of a sprawling probe into illegal sports betting and rigged poker games that allegedly involved organized crime.

FBI Director Kash Patel didn’t mince words when announcing the arrests. U.S. Attorney Joseph Nocella Jr. called it “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.” That is not hyperbole when you’re talking about tens of millions of dollars and criminal enterprises spanning multiple states.

Jones has been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. These aren’t parking tickets. These are federal charges that carry serious prison time if he’s convicted.

The Lakers’ Response and Current Status

When ESPN reached out to the Lakers for comment on Thursday, the team had nothing to say. Smart move. What are they supposed to say? Jones wasn’t even an official employee during the 2022-23 season, and he’s no longer with the organization under current Head Coach JJ Redick.

But the damage to the team’s reputation is already done. How many other times did this allegedly happen? How many other games were compromised? How many bettors made money off information they shouldn’t have had access to? These are questions that probably keep Lakers brass up at night.

Why This Matters For the NBA

The NBA has always walked a tightrope with gambling. For decades, the league kept sports betting at arm’s length, terrified of another scandal like the Tim Donaghy referee betting controversy. Then, states started legalizing sports betting, and the NBA jumped in with both feet, forming partnerships with gambling companies and embracing the revenue stream.

But cases like this one show why the league’s original fears weren’t unfounded. When you have people with insider access allegedly selling privileged information to gamblers, the integrity of the entire sport comes into question. Fans need to believe the games are fair and that outcomes aren’t being manipulated. Stories like this shake that faith.

The league has policies in place to prevent exactly this kind of situation, but clearly, those policies only work if people follow them. Jones allegedly had access to the Lakers despite not being an official employee, which raises questions about how teams monitor who’s in their facilities and who has access to sensitive information.

The Human Cost

Beyond the legal implications and the potential prison time, think about the human cost here. LeBron James trusted Jones. They were teammates. They won games together. Jones was part of James’ championship run in Cleveland. Those bonds are supposed to mean something in this league.

Now, James has to process that someone he considered a friend allegedly betrayed that trust for money. And not even that much money when you think about it. According to the indictment, Jones allegedly received $2,500 for his information in that January 2024 game. That is chump change for someone who played 11 years in the NBA and made millions during his career. Was it worth it? Was $2,500 worth potentially going to federal prison? Was it worth destroying relationships that took years to build? Those are questions only Jones can answer.

What Happens Next

Jones will face trial on federal charges. If convicted, he could spend years in prison. His reputation in the basketball community is already destroyed. No team will touch him with a ten-foot pole after this, regardless of the trial’s outcome.

The NBA will likely conduct its own investigation to see if any other teams or players were compromised. Expect enhanced security protocols around injury reports and stricter policies about who can access team facilities and information.

For James and the Lakers, this is a black eye they didn’t need. The team is already dealing with enough drama without adding a federal investigation into the mix. But at least they can take some comfort in knowing that their superstar wasn’t involved and was, in fact, a victim of alleged fraud.

The broader message here is clear: the intersection of sports and gambling creates opportunities for corruption that threaten the integrity of the games we love. The NBA, its teams, and its players need to be vigilant about protecting sensitive information and limiting access to those who truly need it. Otherwise, stories like this one will keep happening, and fans will keep losing faith in whether the games they’re watching are legitimate.