A widening federal investigation into sports betting has drawn the name of LeBron James into public view, even as prosecutors and the NBA stress that the Los Angeles Lakers star has not been accused of wrongdoing. The case centers on allegations that confidential team information was leaked to gamblers by a longtime James associate, intensifying scrutiny of how non-public data circulates in an era of legalized sports wagering.
The investigation, which involves federal prosecutors and an internal NBA review, focuses on Damon Jones, a former NBA player who has maintained close ties to James for years. Court filings allege Jones sold advance information about player availability to bettors, prompting broader questions about access, oversight and the league's ability to police informal relationships around its most valuable franchises.
According to people familiar with the inquiry, investigators contacted two Lakers employees connected to James as part of their review of how sensitive information may have been handled within the organization. James himself has not been named in any charging documents, and league officials say he is not a subject of the investigation.
Federal prosecutors allege Jones obtained non-public injury and availability updates through personal relationships and passed that information to gamblers before it was released publicly. In one cited instance, prosecutors say Jones tipped off a bettor that James would miss a February 2023 game prior to the official announcement. James ultimately sat out, and the Lakers lost the game.
Court records also allege that Jones shared confidential health information about another Lakers star ahead of a January 2024 contest. Prosecutors say Jones received payments through peer-to-peer transfer apps in exchange for the information. Jones has pleaded not guilty to wire fraud and money laundering charges.
The NBA has moved quickly to distance James from the alleged misconduct. League sources have said James was unaware that information was being leaked and had no knowledge of Jones' alleged actions. An NBA spokesperson confirmed the league is cooperating with federal authorities and emphasized that James is not under investigation and has not violated league rules.
While the allegations do not implicate James directly, the case has unsettled league executives already navigating the risks associated with legalized sports betting. The NBA has partnerships with sportsbooks and relies heavily on public trust in the integrity of its games, making any suggestion of insider information leaks particularly sensitive.
Industry analysts note that the investigation highlights structural vulnerabilities rather than individual culpability. Informal access to players, trainers and team staff can create pathways for information to move outside official channels, even without the knowledge of star athletes themselves.
