What an FBI Probe Into Illegal Betting Means for the NBA

Summary

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WSJ What’s News – “What an FBI Probe Into Illegal Betting Means for the NBA”

Date: October 23, 2025
Host: Alex Osola
Featured Guests: Jared Diamond (WSJ Sports Reporter), Hannah Aaron Lang (WSJ Markets Reporter), Joe Flint (WSJ Media & Entertainment Reporter)

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Episode Overview

This episode delves into a federal investigation uncovering massive illegal gambling and match-fixing schemes involving current NBA figures, discusses a high-profile presidential pardon in the crypto world, examines the resurgence of meme stocks, and previews Hollywood’s “micro drama” trend. The NBA gambling scandal, however, takes center stage, with in-depth insights and implications for the league and broader sports gambling landscape.

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Key Discussion Points & Insights

1. NBA Illegal Gambling and Match-Fixing Scandal

[00:18 – 05:02]

• Federal Charges & Scope

  • Over 30 people, including Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier, were arrested for involvement in illegal gambling and game rigging.
  • "This is a complete disaster for the NBA, really one of the biggest gambling scandals in the history of American sports." — Jared Diamond (00:27)
  • FBI Director Kash Patel emphasizes the immense scale: "We're talking about tens of millions of dollars in fraud and theft and robbery across a multi year investigation." (01:23)

• Schemes Explained

  • Sports Betting & Match Fixing: NBA players, such as Rozier, allegedly supplied insiders with advanced knowledge (e.g., planned “injuries”) to manipulate sportsbook bets.
    • "Terry Rozier ... allegedly knew that he planned to remove himself from that game with an injury. That information was ... passed along to some gamblers who used it to bet a lot of money on Terry Rozier not meeting certain statistical benchmarks." — Jared Diamond (01:55)
  • Rigged Poker Games: Large-scale, underground poker circles used high-tech cheating (x-ray tables, marked cards) to bilk victims; NBA players helped recruit targets. Mafia involvement confirmed.
    • "It’s honestly, something straight out of a movie." — Jared Diamond (03:41)

• Implications for the NBA

  • The scandal is especially damaging for Commissioner Adam Silver, a proponent of legalized sports gambling.
    • "It is now that commissioner who is facing really one of the biggest gambling scandals in the history of American sports." — Jared Diamond (03:54)

• Impact of Legalized Sports Betting

  • Legal platforms facilitated some bets, but illegal physical events also crucial.
  • "There's no question that the rise of legal gambling has created an environment that lends itself to more gambling scandals." — Jared Diamond (04:29)

• NBA and Team Responses

  • Both Billups and Rozier placed on immediate leave; teams and legal representatives largely unavailable for comment.
  • Rozier’s lawyer: “[He] is not a gambler, but is, quote, not afraid of a fight.” (05:03)

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2. Other Major News Headlines

[05:03 – 10:48]

• Presidential Pardon in Crypto

  • President Trump pardons Binance founder Changpeng Zhao after his 2023 conviction, possibly paving Binance’s return to the US. (07:25)

• Government Shutdown Updates

  • Standoff around air traffic controllers’ pay; shutdown looms, Senate fails to pass pay guarantee for essential workers. (05:23)

• NYC Mayoral Endorsement

  • Mayor Eric Adams to endorse Andrew Cuomo, shaking up a hotly contested mayoral race. (06:16)

• Market Updates

  • US stocks rise on news of a Trump–Xi Jinping meeting.
  • Ford’s Q3 profit doubles, new sales records set. (06:30)

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3. Meme Stocks: Beyond Meat’s Volatile Surge

[08:56 – 10:48]

• Why the Frenzy?

  • Beyond Meat shares temporarily double after a new Walmart deal and debt restructuring; meme traders drive volume.
    • "You can buy a large quantity of shares without having to spend a lot of money." — Hannah Aaron Lang (09:08)

• Return of Meme Stocks?

  • New meme stock-focused ETFs signal speculative market mood reminiscent of the 2021 GameStop frenzy.
    • "We have seen meme stocks reappear this year ... We're seeing a lot of speculation, a lot of risky bets, and with that comes the re-emergence of meme stocks." — Hannah Aaron Lang (09:49)

• Sustainability for Beyond Meat?

  • Meme status brings volatile price moves, but does not alter company fundamentals.
    • "The thing about Meme Stocks is that the share price action is completely disconnected from those fundamentals." — Hannah Aaron Lang (10:13)

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4. Hollywood’s Micro Drama Gamble

[10:55 – 12:44]

• The Trend

  • Short-form, serialized “micro dramas” (1–2 minute episodes) popularized in China arrive in US.
  • Former studio exec Bill Block to launch Gamma Time with more than 20 shows.

• Business Model

  • "It’s very similar to mobile gaming ... You buy tokens. The idea is you kind of become addicted to these things ... When you’re buying tokens, of course, you don’t really think you’re spending money, but you are." — Joe Flint (11:35)

• Not Another Quibi

  • Flint notes crucial differences from failed short-form platform Quibi: micro dramas are cheaper, addiction- and token-based, less “prestige” focused.

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Notable Quotes & Memorable Moments

• Jared Diamond (on NBA scandal):

  • “This is a complete disaster for the NBA, really one of the biggest gambling scandals in the history of American sports. There’s really no other way to put it.” (00:27, repeated at 03:48)

• FBI Director Kash Patel:

  • “We’re talking about tens of millions of dollars in fraud and theft and robbery across a multi year investigation.” (01:23)

• Hannah Aaron Lang (on meme stocks):

  • “The thing about Meme Stocks is that the share price action is completely disconnected from those fundamentals.” (10:13)

• Joe Flint (on micro dramas):

  • “It’s a little psychological thing too. When you’re buying tokens, of course, you don’t really think you’re spending money, but you are.” (11:55)

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Important Timestamps

• 00:18: Introduction to the NBA gambling scandal and arrests
• 01:23: FBI Director outlines scope of fraud
• 01:55: Breakdown of two gambling schemes
• 03:48: Discussion on reputational risks for the NBA
• 04:29: Analysis on legal gambling’s role
• 05:03: NBA and legal reactions
• 07:25: Trump pardons Binance founder / Rivian layoffs / Beyond Meat stock moves
• 09:03: Why Beyond Meat became a meme stock
• 09:49: Are meme stocks back?
• 10:13: Does meme stock status help companies?
• 10:55: Rise of Hollywood’s micro drama streaming
• 11:30: Explaining micro dramas and their business

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Tone & Style

The episode maintains WSJ’s brisk hallmark: factual yet conversational, balancing high-level implications with digestible analysis and memorable lines from seasoned journalists and industry watchers.

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This summary captures the major stories, detailed insight into the NBA scandal, and the broader trends shaping business, sports, and entertainment as reported in the October 23, 2025, PM edition of What’s News.

Transcript

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[Alex Osola]

Federal prosecutors charge more than 30 people, including a current NBA coach and player, as part of an investigation into illegal gambling.

[Jared Diamond]

This is a complete disaster for the NBA, really one of the biggest gambling scandals in the history of American sports. There's really no other way to put it.

[Alex Osola]

Plus, President Trump pardons Binance founder Changpeng Zhao. And is it 2021 because meme stocks are back. It's Thursday, October 23rd. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Portland Trail Blazers head coach Chauncey Billups and Miami Heat guard Terry Rozier were each arrested this morning in connection with a sweeping investigation into illegal gambling and rigging games in the NBA. That's according to several people familiar with the matter. Speaking at a press conference today, FBI Director Kash Patel offered some details about the alleged crime ring.

[FBI Director Kash Patel]

The fraud is mind boggling. It's not hundreds of dollars, it's not thousands of dollars, it's not tens of thousands of dollars, it's not even millions of dollars. We're talking about tens of millions of dollars in fraud and theft and robbery across a multi year investigation.

[Alex Osola]

This isn't the first time a gambling scandal has affected the NBA. But Billups is by far the most prominent figure to be swept up in the federal investigation. WSJ sports reporter Jared diamond is here to tell us more. Jared, what do we know about this probe?

[Jared Diamond]

Well, there are essentially two different gambling relating schemes allegedly operating concurrently, both involving NBA players. The first one, pretty simple sports betting, match fixing type of pro where there's NBA players and others connected to the NBA allegedly feeding inside information for the purpose of gambling. So essentially Terry Rogier, he was playing in a game he allegedly knew that he planned to remove himself from that game with an injury. That information was allegedly passed along to some gamblers who used it to bet a lot of money on Terry Rozier not meeting certain statistical benchmarks and made money off of it. And this was happening allegedly around the NBA. The other case is something brand new. This involves a large ring of underground illegal poker games where the games were rigged using x ray tables, mark cards where you could only see them with contact lenses, rigged shuffling machines and these games were set up to allegedly steal money from people. But what these people who organized these games did is they were able somehow, in ways that we haven't quite figured out yet, recruit big name people, NBA players, to lure in other victims to essentially giving their money up in these rigged poker games. We also know that the mafia was involved with these poker games. The fact that NBA players have gotten involved with this allegedly just adds more intrigue. Honestly, something straight out of a movie.

[Alex Osola]

Given what you just said. Is this a bad look for the NBA?

[Jared Diamond]

This is a complete disaster for the NBA. Adam Silver, the commissioner of the NBA, has been known for years as the first and the loudest pro gambling commissioner in American sports. He was the first one of all the leagues to come out in favor of legalizing sports gambling. It is now that commissioner who is facing really one of the biggest gambling scandals in the history of American sports. There's really no other way to put it.

[Alex Osola]

The ways and platforms for people to gamble legally in the US have really proliferated in recent years. Did that play a role in the alleged crimes here?

[Jared Diamond]

These poker games that we're talking about, underground poker games at home, they were not done at tables in Las Vegas. But the Terry Rozier matter, the vets in question are all placed legally, all placed in regulated sportsbooks in the United States, the Fanduels and DraftKings of the world and others. The reality is, there's no question that the rise of legal gambling has created an environment that lends itself to more gambling scandals.

[Alex Osola]

That was Wall Street Journal sports reporter Jared Diamond. Thank you, Jared.

[Jared Diamond]

You got it.

[Alex Osola]

In a statement, the NBA said that Billups and Rosier had been placed on immediate leave from their teams, the Portland Trailblazers, which Billups coaches didn't immediately respond to inquiries. Rosier's lawyer said that his client is not a gambler, but is, quote, not afraid of a fight. Top Republicans warn today that air traffic controllers would miss their paychecks next week because of the government shutdown. Speaking at a news conference, Transportation Secretary Sean Duffy warned that the strain on the aviation system would hit travelers in the GOP controlled Senate. Republicans failed to advance a measure today that would pay all federal workers who are deemed essential by the administration and required to work during a shutdown, including air traffic controllers. The vote was 54 in favor to 45 against, short of the 60 votes needed. Democratic senators John Fetterman of Pennsylvania and John Ossoff and Raphael Warnock of Georgia sided with Republic and New York City Mayor Eric Adams will endorse Andrew Cuomo in the city's mayoral race, marking a late effort to boost the former governor's chances of defeating frontrunner Zoran Mamdani. The election is on Tuesday, November 4th. US stocks rose after the White House announced that President Trump would meet with Chinese leader Xi Jinping next week. In Asia, the dow increased about 0.3%, the S&P 500 added about 0.6%, and the Nasdaq ended about 0.9% percent higher. And reporting after the bell, Ford Motors profit more than doubled in the third quarter as its sales rose for pickups and SUVs. The company's third quarter revenue exceeded $50 billion, establishing a record and topping the $43 billion that analysts expected, according to Elseg. Coming up, what yesterday's feeding frenzy for Beyond Meat stock means for the company's long term prospects. That's after the break.

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[Alex Osola]

We'Re exclusively reporting that President Trump has pardoned Changpeng Zhao, the convicted founder of the crypto exchange Binance. The move follows months of efforts by Zhao to boost the Trump family's own crypto company, according to a person familiar with the matter. Trump recently indicated to advisers that he was sympathetic to arguments of political persecution related to Zhao and others. A pardon will likely pave the way for Binance, which is the world's largest crypto exchange, to return to the US after the company pleaded guilty in 2023 to violating US Anti Money Laundering requirements and was barred from operating in the country. And in another exclusive, we report that electric truck maker Rivian is laying off more than 600 people, or around 4% of its workforce. That's according to people familiar with the matter. The cuts follow a smaller round of layoffs last month. Rivian and other EV manufacturers are being hit hard by the pullback in policies that supported the adoption of electric vehicles. Years after its buzzy 2019 IPO. Beyond Meat has struggled to persuade more consumers to buy its potato starch and pea protein patties. But meme stock traders are all in. Yesterday, Beyond Meat's shares more than doubled before giving back all of the gains. According to FactSet, more than 2 billion beyond meat shares changed hands yesterday, making it the second most traded name among US Stocks and a major focus of online investing forums. For more on what's driving the craze, I'm joined now by WSJ markets reporter Hannah Aaron Lang. Hannah, why Are traders looking at Beyond Meat as a meme Stock?

[Hannah Aaron Lang]

There are a couple factors that might be at play here. One is that last week the company outlined this debt deal that required them to issue a ton more shares and dropped the stock price, making the shares effectively even cheaper than the few dollars they had been before. You can buy a large quantity of shares without having to spend a lot of money. Also on Tuesday, Beyond Meat announced a new deal with Walmart that would expand distribution of its products in those stores. So those are a couple potential catalysts here. But like all meme stocks, the jump in the share price was a little bit arbitrary and kind of came out of nowhere.

[Alex Osola]

I feel like I haven't actually heard the term meme stock in a while. I mean, it's been a minute since the 2021 GameStop frenzy. So is this a sign that meme stocks are maybe coming back?

[Hannah Aaron Lang]

We have seen meme stocks reappear this year. We now have a meme stock ETF from Roundhill, and this is characteristic of what the market looks like today. We're seeing a lot of speculation, a lot of risky bets, and with that comes the re emergence of meme stocks.

[Alex Osola]

How about for Beyond Meat? What does this memeification mean for its long term prospects?

[Hannah Aaron Lang]

This has played out differently for companies that have become meme stocks in the last year. We've seen this drive major changes. Look at Opendoor and the CEO departure that happened after that stock skyrocketed earlier this summer. But just because individual investors have driven such a large jump in this company's stock doesn't mean this is the foundation for a long lasting positive change for the company. This is a company with long standing challenges to the fundamentals of its business. And the thing about Meme Stocks is that the share price action is completely disconnected from those fundamentals.

[Alex Osola]

That was Wall Street Journal reporter Hannah Aaron Lang. Thanks Hannah.

[Hannah Aaron Lang]

Thanks for.

[Alex Osola]

And finally, Hollywood's next big bet is small. Very small. Traditional studios and startups are jumping on the micro drama bandwagon that has swept through China and is making inroads in the US and elsewhere. And today we're exclusively reporting that this week former movie studio executive Bill Block is launching Gamma Time, a micro drama platform with more than 20 shows. Joe Flint, who covers media and entertainment for the Journal, told me what a micro drama is and why the people behind Gamma Time think it will succeed in the US where other short form video platforms have failed.

[Joe Flint]

A microdrama is essentially a very short series. So let's say you and I were making a TV series. What if that series from start to finish was only 60 minutes and then we chopped it up into little 1 minute or 2 minute episodes and then put them on a platform or on a social media space like TikTok or Facebook. We'd have them watch a few episodes and then we'd make them join our app and then we'd make them buy tokens so they could keep watching and maybe even for some advertising on them. So it's very similar to mobile gaming. That's how mobile gaming operates. Some free, some pay, you buy tokens. The idea is you kind of become addicted to these things and it's a little psychological thing too. When you're buying tokens, of course, you don't really think you're spending money, but. But you are. The one thing everyone involved in this business will tell you is this is not Quibi 2. Quibi was not cheap. They were trying to make big budget content for the small screen. They were trying to do serious news programming as well. Quibi, I dare say, was very ambitious and probably a little bit of the right idea at the wrong time.

[Alex Osola]

And that's what's news for this Thursday afternoon. Today's show was produced by by Pierre Bienname and Zoe Kulkin with Deputy editor Jana Herron. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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