Gamblers irate over the NBA betting scandal could have a slam-dunk lawsuit that could cost the league billions in litigation and reputational damage, gaming-law experts contend.
“The risk to the league to defend this and all of the dominoes off of it, including the overall integrity of the brand is definitely nine figures, and could be 10 figures,” International Masters of Gaming Law President Marc Dunbar told The Post.
“I wouldn’t be surprised if a lawsuit is dropped by or before next Friday.”
The Justice Department charged 31 defendants — including Portland Trail Blazers Coach Chauncey Billups, Miami Heat point guard Terry Rozier and ex-Cleveland Cavaliers player Damon Jones — in a major gambling bust Thursday that involved several major organized crime families.
“I can guarantee you that there’ll be some resulting class actions coming out of all this,” gaming attorney Ernest Matthews said.
Rozier, 31, is accused of tipping off friends he was injured so they could place bets before anyone else knew, while Billups and Jones are alleged to have acted as “face cards” to lure gamblers into rigged Mafia-run poker games.
Court documents also allege that Billups, 49, tipped off gamblers that the Trail Blazers were planning to tank a game — though he has yet to be charged for that scheme.
“Everybody in the industry is concerned what this means, everybody. And it goes to … the Players Association and everybody on the business to business side involved in the handling of wagering transactions,” said Dunbar, whose firm’s clients include several major sports betting sites.
The perception that the NBA is “getting in bed” with gaming companies could open the league up to hefty litigation from aggrieved gamblers, Matthews claimed.
On the other hand, bettors would have a tough time going after gaming sites due to their onerous terms and conditions, said Dunbar, whose firm also represents the New Orleans Pelicans.
When signing onto a betting website or app, many gamblers agree to settle any potential claim in arbitration — a process that may not even be conducted in the US.
“In some cases, the arbitration could be where [the betting websites’] risk management is ultimately handled, which could be in the country of Malta,” Dunbar said.
Dunbar said that the players — and Billups — might be the most vulnerable to lawsuits due to federal anti-match fixing statutes that make it a crime to deliberately throw a professional sporting event.
“You can use those as a basis for civil racketeering claims … you definitely have enough actors and enough money involved to probably meet racketeering thresholds,” he said.
