The illegal NBA betting scandal has its first convicted defendant. A federal court in Brooklyn, New York, handed down a two-year prison sentence to Timothy McCormack, a gambler who became the first person to be convicted in an investigation that uncovered a fraud scheme involving sports betting and the use of confidential information linked to NBA players.
According to the court case, McCormack participated in a conspiracy to defraud betting platforms through the use of non-public player performance data, including situations such as limited availability and other internal signals that were not available to the general public. This type of information is especially valuable in player betting markets, where the outcome depends on specific statistics (points, rebounds or assists).
How did the fraud operate?
The investigation revealed a network that sought to take advantage of bets known as “unders”.
That is, betting that a player will underperform.
According to prosecution documents, these bets became highly profitable when participants had advance information about possible reduced performance or internal situations affecting performance.
The case ended up involving two names that generated a lot of media attention:
Terry Rozier (former Charlotte Hornets player) and Jontay Porter (former Toronto Raptors player).
In particular, Porter’s case became a critical point for the league, as the NBA banned him for life, in one of the harshest sanctions seen in the modern era of professional basketball.
This type of information is especially valuable
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The judge recognized the addiction
During the hearing, McCormack testified that he has dealt with gambling addiction for much of his life and was emotional when speaking in court.
Federal Judge LaShann DeArcy Hall acknowledged the human component of the case.
He admitted that addiction is a real problem, but stressed that this does not reduce the impact of crime on the credibility of professional sports, in this case, the NBA.
Although the prosecution asked for a longer sentence, the final judgment established two years in prison, plus one year of supervised release, with a key condition:
Total prohibition of gambling.
Why is this case so important in 2026?
This process sets a strong precedent in the United States, where sports betting has expanded massively.
For the NBA and other leagues, the message is clear:
Any attempt to manipulate or exploit the betting system, especially using inside information, can result in imprisonment.
McCormack is due to report to prison on April 20, while others involved continue to face legal proceedings.
In parallel, the case reinforces a central concern:
Protect the integrity of the game and prevent betting money from changing what happens on the field.
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