Former Houston Cougars Basketball Guard Arrested in Illegal Betting Scheme
Former University of Houston guard, NBA player, and coach Damon Jones was arrested in Las Vegas on Thursday for his role in a huge illegal gambling scheme that was revealed by the FBI. Jones allegedly gave inside information on NBA games for betting and was also in on an operation rigging illegal poker games that have also been linked to organized crime and the Mafia.
Jones was just one of 34 people arrested by the FBI, which also included Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier. They all have two charges: conspiracy to commit wire fraud and conspiracy to commit money laundering.
Tens of millions of dollars were made through fraud over 11 states, per FBI Director Kash Patel.
Damon Jones at Houston
Damon Jones allegedly provided “inside information” about NBA games to bettors, per @ABC pic.twitter.com/30qS12KllZ
— NBACentral (@TheDunkCentral) October 23, 2025
Jones has many connections to H-Town. Born in Galveston, Jones went to Ball High School and played three years of college basketball at Houston. The 6-foot-3 guard played 81 games for the Cougars from 1994-97 and ended up declaring early for the 1997 NBA draft but went unselected. According to Chron, he averaged 16.4 PPG and 4.9 assists in his junior season.
Jones played in the NBA from 1999-2009, including the Cavaliers from 2005-08. After playing overseas, he was then an assistant coach with the Cavs from 2014-18.
More on the Charges
LeBron James was reportedly the player Damon Jones used inside info about before a Feb. 2023 Bucks–Lakers game, per @TheAthletic
— NBACentral (@TheDunkCentral) October 23, 2025
Jones allegedly told others to bet on Milwaukee after learning LeBron would sit out with ankle soreness — before it was on the injury report. pic.twitter.com/Bop5TvVf76
The now 49-year-old allegedly sold information about LeBron James and the Los Angeles Lakers to be used for illegal sports bets. He was not an employee of the Lakers when he did it. Jones was an unofficial and unpaid coach for LA from 2022-23.
Most of his time in Cleveland was with James, and he apparently used that connection. Jones played for 10 NBA teams and had a lot of popular friends besides James. He also won a ring in 2016 with the Cavs. Jones also worked as TV analyst on ESPN in 2018.
Shaq:
— Legion Hoops (@LegionHoops) October 23, 2025
"I know Chauncey Billups and Damon Jones very well. I'm ashamed that those guys would put their families and careers in jeopardy. If you're making $9 million a year, how much more do you need?" pic.twitter.com/6iokHUxq1z
Per Sports Illustrated, Jones’s involvement in this scheme is the biggest. He sold information that was non-public for profit.
The Department of Justice lists two Lakers games in February 2023 and January 2024 where he sold player injury information. Context points to those two players being James and Anthony Davis, per CBS Sports. Joseph Nocella, the U.S. attorney for the Eastern District of New York, called it “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”
Maanav Gupta is a staff writer for Houston Cougars on SI. He graduated from the University of Houston in the summer of 2025 with his bachelor’s in journalism and a minor in Spanish. Gupta spent three years at the student newspaper, The Daily Cougar, and also covered the 2025 Final Four and National Championship as Houston beat writer for College Basketball Review. He also has his own YouTube channel, Maanav’s Sports Talk, where he has interviewed professional athletes and broadcasters like Jim Nantz, Jose Altuve, J.J. Watt, Rich Eisen, and Alperen Sengun. Gupta was also a contributor to the Houston athletic program as a student. You can find Gupta on X, Instagram and TikTok @MGSportsTalk.